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Solana (SOL) has hit another record high: today it has over 75 million monthly active addresses. This increase speaks to the growing popularity of the network, especially in areas such as developer and user activity within the decentralized application (dApps), DeFi, and nft sectors.
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With such an increase in Solana’s activities, the platform further distances itself from the rest as it remains one of the most scalable and efficient blockchains available.
Despite this positive momentum, recent market activity has seen significant volatility. SUNOn September 18, Solana experienced $121,000 worth of short position liquidations and nearly $3.20 million worth of long position liquidations, with Binance seeing the majority of long positions liquidated. This strong long position liquidation indicates that traders might be cautious regarding Solana’s short-term price movements.
Source: Artemis
Price forecast shows potential
While short-term volatility is a concern, Solana’s price forecast points to a brighter future. SOL is currently trading 14.59% below its estimated value for the next month, indicating bearish pressure in the short term. However, the price is projected to grow by 2.59% over the next three months, with an even higher increase. Stronger growth is expected Further down the road.
In six months, Solana’s price could increase by 115%, with a projected increase of 52% over the next year. This indicates that although the short-term future is not so promising, Solana is a great investment prospect in the long term.
At the time of writing, SOL is trading at $141.21 were up 10.1% and 4.1% on both daily and weekly time frames, Coingecko data shows.
Increased user activity
One of the key factors that gives Solana great potential is that it has a growing user base. Active addresses on the network have increased exponentially since mid-2023 and now stand at 75.2 million in absolute terms.
This reflects that Solana is scaling well and can process large transaction volumes while fees are low; more developers and users flocked to the platform and the Solana ecosystem continues to grow.
This user growth is not just a short-term phenomenon. The launch of new features and updates in the coming months could further accelerate adoption, particularly in the DeFi and nft spaces, where scalability is a key factor.
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A network for the future?
The growth in active addresses, as well as the good price outlook, should leave Solana on stable ground. While liquidations and sideways movements in the short term could raise some concerns among investors, the long term looks promising.
For now, investors may need to be cautious about short-term volatility, but Solana’s long-term outlook remains strong. Those looking to invest for the future may find Solana’s current price to be a good entry point before projected growth takes hold.
Featured image from Protos, chart from TradingView
