Solana’s native token, SOL, has shown significant movement in recent weeks, driven by a spike in decentralized application (DApp) usage and increased network activity. While SOL experienced a 9% decline after hitting a high of $161.80 on September 29, this price correction aligns with a broader market downturn. Despite the drop, many traders are optimistic that Solana’s strong fundamentals could push SOL to $180 in the near future.
SOL Price Outlook: TVL and Low Fees Bolster Optimism
Even after the recent pullback, SOL has gained 10.4% over the past 30 days, indicating that the overall market sentiment surrounding Solana remains positive. The token’s growing popularity is supported by Solana’s impressive total value locked (TVL), which ranks third in the crypto ecosystem. TVL measures the amount of capital held in the network’s smart contracts, a key indicator of a blockchain’s utility and strength.
A primary factor in Solana’s success is its network efficiency, boasting low transaction fees and high throughput. According to GasFeesNow, the average transaction on Solana costs just $0.02, compared to Ethereum’s $2.50 and BNB Chain’s $0.08. This cost advantage allows Solana to attract more users and developers, who might otherwise rely on layer-2 scaling solutions on other blockchains that add complexity and additional costs.
Surge in Network Activity Drives DApp Adoption
The recent 46% increase in decentralized application (DApp) volume on Solana suggests that more users are interacting with the network’s applications, adding further momentum to SOL’s price movement. This uptick is partly fueled by upcoming project launches, including the success of the Pump.fun memecoin launchpad, which achieved 65,000 daily active addresses in late July. Such high engagement points to growing interest in Solana’s ecosystem.
While low transaction fees play a role in attracting users, Solana’s appeal goes beyond cost-efficiency. The network’s scalability and low latency have made it a preferred choice for developers, helping it stand out against major competitors like Ethereum and BNB Chain.
Is $180 SOL a Realistic Target?
With Solana’s solid fundamentals, including a strong TVL and its competitive advantage in transaction fees, many analysts see the potential for further price growth. If the current trend of increased network activity continues, SOL could outperform its competitors, pushing the price towards $180. However, broader market conditions and altcoin market performance will also play a significant role in determining SOL’s trajectory.
