Despite rising transaction fees, Solana continues to thrive in 2024 with high daily activity, DeFi growth, and bullish market metrics. Explore SOL's latest developments.
The year 2024 has brought about a positive outlook for Solana [SOL], witnessing a rapid increase in its market capitalization.
While the token's value soared, another crucial parameter showed a notable upward trend, potentially impacting the blockchain's performance.
Recent data sets highlight a significant surge in Solana's average transaction fees over the past several months, surpassing $0.03, which is notably higher than the average Layer 2 solutions.
Elevated transaction costs could potentially hinder network activity, leading users to reduce transactions due to the increased expenses. To investigate this, AMBCrypto conducted an analysis using Artemis' data.
Our examination revealed that despite the elevated transaction costs, SOL's daily active addresses remained consistently high over the last three months.
A similar upward trajectory was observed in terms of daily transaction counts, indicating that users were willing to bear the high transaction costs on Solana.
The impact of high fees also reflected positively on the blockchain's captured value, evident from the sharp spike in revenue on January 31st.
However, the graph started to decline in the subsequent days.
Additionally, developments in the DeFi space looked promising, with AMBCrypto reporting earlier that SOL's Total Value Locked (TVL) reached $2 billion, displaying consistent growth since December 2023.
Solana's price performance remained strong last month, as per CoinMarketCap, with SOL witnessing a more than 17% increase in the last 30 days.
As of the current writing, SOL is trading at $102.91 with a market capitalization exceeding $45.3 billion, securing its position as the fifth-largest cryptocurrency.
Encouragingly, SOL's development activity remained high, showcasing ongoing efforts by developers to enhance the blockchain. However, despite the significant price surge, SOL's social volume experienced a decline last month.
Notably, a prevailing bearish sentiment surrounded the token in the market.
Nevertheless, metrics in the derivatives market presented a bullish outlook for Solana. For instance, Solana's Binance Funding Rate was in the green, indicating active buying by futures investors.
Open Interest also remained high, suggesting that Solana's growth momentum may persist.
