Solana (SOL) remained resilient this week, holding firmly above the crucial $120 support level while showcasing a strong recovery from its monthly low. The asset rallied to $135 on Friday, gaining more than 40% from its recent bottom of $94.65, and boosting its market valuation to nearly $70 billion.
Surge in Network Activity and Fees
Solana’s network has been experiencing a noticeable uptick in activity across several key metrics. According to Nansen, the number of active addresses on Solana jumped by 17% over the past seven days, reaching an impressive 29 million. This figure significantly outpaces rival chains like Tron (5.9 million), Binance Smart Chain (4.9 million), and Ethereum (1.86 million), underlining Solana’s growing user base.
In addition to address activity, Solana also led in transaction throughput. The blockchain processed a staggering 374 million transactions this week—more than all other major chains combined. This increase in usage translated into higher network revenue, with fee generation climbing to over $7.67 million, up 42% from the prior week.
DEX Volume Outpaces Ethereum
Solana’s decentralized exchanges (DEXs) have also seen explosive growth. Data from DeFi Llama reveals that 24-hour DEX volume surged to $2.27 billion, surpassing Ethereum’s $1.52 billion. On a weekly scale, Solana recorded $16.14 billion in volume—well ahead of Ethereum’s $12.36 billion and BSC’s $6.5 billion.
This jump in DEX usage highlights Solana’s strengthening role in the DeFi ecosystem, benefiting from lower transaction costs and faster execution speeds compared to competitors.
Ecosystem and Institutional Support
Tokens within the Solana ecosystem have mirrored the network’s momentum. Notably, the Pudgy Penguins token soared 12% in the past week, while Popcat posted a 10% gain despite recent volatility.
Further boosting investor confidence is institutional backing. Janover, a U.S.-based real estate tech firm, recently increased its SOL holdings with a $10 million purchase, bringing its total investment to $21 million.
Technical Outlook: Path Toward $150 and Beyond?
From a technical perspective, Solana is exhibiting bullish momentum. The Relative Strength Index (RSI) has moved above the neutral 50 mark, and the Moving Average Convergence Divergence (MACD) is nearing a bullish crossover above the zero line. These indicators suggest further upside potential.
If bullish sentiment continues, SOL could push toward the psychological resistance at $150, a 12% climb from current levels. A further breakout may open the door for a test of the $170 resistance the low seen in January 2024. Conversely, a drop below the $120 support would challenge the bullish case and potentially trigger a short-term correction.
