Solana DApps Volume Jumps 46%: Is $180 SOL Next?

Introduction

Solana’s native token, SOL, experienced a significant 9% decline over two days after peaking at $161.80 on September 29, marking its highest level in seven weeks. This correction mirrored the broader altcoin market capitalization, which fell from approximately $800 billion to $739 billion by October 1. However, despite this downturn, SOL’s price has shown resilience, increasing by 10.4% over the past 30 days.

SOL Price Trends and Market Sentiment

Despite the recent correction, Solana’s network usage surged, prompting traders to speculate whether SOL has the potential to outperform its competitors. Currently, SOL ranks as the fourth-largest cryptocurrency by market capitalization and the third in total value locked (TVL), which measures the amount deposited in the network’s smart contracts.

• Average transaction cost on Solana: $0.02
• Average transaction cost on Ethereum: $2.50
• Average transaction cost on BNB Chain: $0.08

Solana’s strategy to enhance network robustness through its validators has proven effective, offering a competitive edge over major rivals. However, low fees alone do not guarantee increased inflows or network activity. They provide a significant advantage for users who prefer not to rely on layer-2 scaling solutions.

Gaming and Mobile Applications: The Future of SOL

Analysts like VanEck predict that SOL’s price could grow by 120% due to its scalability, crucial for the adoption of stablecoins and remittances. A September 25 report highlighted institutional adoption potential and the extraction of value from Ethereum layer-2 solutions as significant drivers for investor interest in Solana.

Recent developments have further fueled optimism:

• The announcement of Gameshift on September 24, a gaming development API utilizing Google Cloud architecture and supported by Solana Labs.
• The upcoming launch of a Solana-backed smartphone named Seeker, priced below $499, featuring an upgraded decentralized applications (DApps) store.

These innovations aim to capture emerging use cases, and investors believe they will translate into increased demand for SOL. As of September 30, the total value locked (TVL) in Solana reached 36.1 million SOL, equating to $5.5 billion, surpassing BNB Chain’s $4.6 billion TVL according to DefiLlama data.

DApp Performance and Market Activity

According to DappRadar, Solana’s DApp volumes increased by 46% compared to the previous week, significantly outperforming Ethereum’s 12% growth. Key performance highlights include:

• Marinade Finance up 66%
• Pump.fun gaining 93%
• Solend jumping 143%

The number of active addresses engaging with smart contracts also increased by 13% in the past week, driven by the Jupiter exchange, which amassed over 2.77 million unique addresses.

Conclusion: A Bullish Outlook for SOL

Given the positive news flow and increased network activity, SOL’s price appears poised to outperform the altcoin market, potentially paving the way for a bull run toward $180 or higher. As investors continue to monitor Solana’s growth trajectory, the combination of low fees, strong TVL, and innovative applications will play a crucial role in its future success.