Solana (SOL), the fourth generation blockchain, has seen a notable comeback when looking at on-chain metrics. Citing data from Artemis, Step Data Insights on X noted that Solana daily active wallets switched to ethereum, the pioneering smart contract platform. This development comes as SOL prices have broken through resistance levels in recent months.
Solana Resurgence Continues, Daily Active Wallets Invest ethereum
According Step data information, Solana's daily active wallets are currently around 400,000, slightly surpassing those of ethereum. This increase in activity suggests that Solana is attracting a growing user base and that more people are interested in exploring its ecosystems, which include DeFi, nft, and other protocols.
Additional Artemis Facts sample that Solana also eclipses ethereum in the number of daily transactions. Although ethereum leads DeFi total value locked (TVL), Solana's low fees and scalable environment could explain why users opt for this high-performance network.
Overall, Solana's rally could be triggered by recent favorable price action in Q4 2023. To quantify, Step Data Insights grades that SOL has increased more than 210% in the last three months. During this time, eth gains have been capped.
The analytical platform claims that the currency only rose 39%. As an example, in the last three months, SOL rose from around $17 to a high of around $70. Meanwhile, eth expanded from around $1,500 to a high of around $2,300, recorded on December 6.
This recovery points to growing investor confidence. However, time will tell if SOL will extend the gains in the sessions. According to the daily chart, prices have moved horizontally for most of the second half of November until early December 2023.
The immediate resistance line is at $70. With SOL moving within a bullish flag, any rally above the November 2023 highs will be the basis for a possible rally that will lift SOL to the April 2022 highs of $140.
Discover bitcoin ETF Hopes and Firedancer Lifts Solana
Altcoins, including Solana, have risen as the cryptocurrency market recovers. Following a court ruling, SOL remains relatively firm despite FTX's estate being allowed to liquidate the currency in secondary markets to pay creditors.
Hopes that the Securities and Exchange Commission (SEC) will approve the first bitcoin ETF have also benefited Solana. However, the recent release of Firedancer, a validation client developed by Jump crypto, on testnet has been compatible with SOL.
The client will make the network more resilient and efficient. Firedancer will go live in the first half of 2024. Once live, the new customer is expected to improve Solana's reliability.
Featured image from Canva, TradingView chart
