What Are the Key Factors Driving Today’s Surge in Solana Price?

#1 Solana Price Follows Bitcoin’s Chart Pattern

The Solana (SOL) price has surged by more than 14% in the last 24 hours, reaching above $71. This recent price rally is attributed to several key factors.

Crypto analyst Jelle has pointed out the resemblance between the current Solana price chart and Bitcoin’s chart pattern from last week. In bull markets, simple patterns tend to work again, and the current ascending triangle formation on Solana’s chart suggests potential upward momentum.

Bitcoin demonstrated a similar pattern recently, breaking through the resistance line around $38,000, leading to a surge to over $44,000. With Solana breaking through its $68 resistance, parallels are drawn to Bitcoin’s rally, indicating a potential upward movement in the coming hours and days.

#2 Airdrop Seasons Attracts Investors

The Solana ecosystem is entering a season of airdrops. The recent JITO airdrop, a Solana-based liquid staking token protocol, garnered significant attention. New airdrops, including Kamino Finance and Celestia (TIA), are on the horizon, attracting new capital to the ecosystem.

Chris Burniske, partner at Placeholder VC, emphasized the positive impact of community-focused airdrops, predicting significant wealth and loyalty effects within the Solana community.

#3 Network Growth Continues

Solana’s DeFi sector is experiencing rapid expansion. Analyst Jay highlighted key metrics, including net inflows from ETH to SOL, DEX volume surge, and a substantial increase in stablecoin market cap. Solana’s TVL in DeFi applications grew 117% in the last month, ranking sixth among all chains and leading in percentage growth.

DeFiLama data showcases Solana’s impressive growth, with Ethereum, despite its leading TVL, trailing behind in percentage increase.

#4 Endorsement By Arthur Hayes And VanEck

BitMEX founder Arthur Hayes has expressed bullish sentiments on SOL, predicting a rise to $100. Additionally, financial giant VanEck has endorsed Solana in its predictions for 2024, foreseeing Solana becoming a top 3 blockchain by market cap, Total Value Locked (TVL), and active users.

VanEck’s analysis suggests that Solana will outperform Ethereum in terms of scalability and decentralized exchange (DEX) market share. At the time of writing, SOL is trading at $71.67.