Can Solana’s speed propel SOL prices to a new high
The cryptocurrency arena is abuzz, with Solana [SOL] capturing significant attention. This excitement stems not only from its pricing dynamics but also from its remarkable network performance, eclipsing other leading blockchains including Polygon [MATIC] in a critical aspect.
Leading the Pack: Solana
Recent insights from CoinGecko position Solana at the pinnacle among blockchains when evaluated on their transactions per second (TPS) capability.
This distinction underscores the blockchain's effectiveness and reliability, boasting the highest transaction throughput within a specific period.
Competing closely, Sui, Binance Smart Chain, and Polygon also ranked highly, yet Solana distinguished itself with a TPS of 1053, far ahead of Polygon’s 190 TPS. Ethereum lagged with a modest TPS of 22.
A review by AMBCrypto using Solana Explorer found Solana's TPS had surged to 2303 at the time of reporting.
Further scrutiny into Artemis’ data by AMBCrypto revealed an intriguing uptrend in Solana’s network engagement, illustrated by an increase in daily active addresses over the past three months, peaking at over 2.4 million in mid-March.
Although the count of daily active addresses rose, the volume of daily transactions on the blockchain showed little change since early February.
Notably, a significant surge in daily transactions was observed on April 11th, though this did not establish a continuing trend.
Value capture for the blockchain displayed a downward trajectory, with Solana's fees plunging after a spike on March 18th. This led to a similar decline in the blockchain's revenue, contrasting its solid performance in the DeFi sector, where it still showed growth in total value locked (TVL).
Joy among Solana Stakeholders
Simultaneously, SOL's market performance demonstrated a bullish trend. As per CoinMarketCap data, SOL experienced over a 20% increase in value over the past week.
At the moment of reporting, its trading price stood at $178.08, accompanied by a market capitalization surpassing $79.9 billion. Despite the increase, the market sentiment remained skeptical, with a weighted sentiment indicator still in the negatives.
However, the bearish outlook might not deter bullish momentum. An AMBCrypto study of SOL's daily chart illuminated a significant rise in its Relative Strength Index (RSI).
Its Chaikin Money Flow (CMF) indicator also presented a bullish stance, registering at 0.15 currently. Yet, the Money Flow Index (MFI) hinted at a potential price correction looming for SOL.
