In October, Solana emerged as the primary focus due to its high transaction volume and fee generation, a trend that Glassnode attributes to a wallet.
Solana (SOL) has experienced a commendable increase in its transaction volume metric. This metric reached its maximum value of approximately $224 billion in a single day, as evidenced by the observed growth.
It is essential to mention that SOL is currently trading at $159.82, while its market capitalization is $75.27 billion. As of the time of writing, its on-chain transfer level had nearly quadrupled its entire market capitalization.
Significant Factor Contributing to Transaction Increase
This transaction surge is associated with a wallet that utilizes multiple accounts and has a high activity level, as per Glassnode. For context, this wallet operates similarly to an arbitrage algorithm, increasing its activity in early October. It is suspected to be the cause of the recent fee increases that have been the subject of numerous discussions in recent weeks.
In addition to the transaction trend, Solana has experienced some sideways movements over the past seven months. It has faced significant challenges in maintaining its position above the psychological threshold of $200.
Experts speculate that Solana may reach $200 before the year concludes, as a recent SOL price prediction indicates. Nevertheless, there is a sense of optimism that the forthcoming US election could significantly accelerate the market.
Therefore, a prospective price increase in SOL may be more imminent than previously thought. Until recently, the SOL ecosystem appeared to be in good condition. Its Total Value Locked (TVL) increased by 54% in six weeks, from $4.77 billion to $7.24 billion.
Additionally, the number of new addresses in Solana experienced a significant increase from 3 million to 5.9 million in October. This resulted in a 96% increase.
Nevertheless, the cryptocurrency market appears to be lethargic. Bitcoin’s potential to achieve a new All-time High (ATH) may motivate Solana to pursue even greater profits.
New Markets, Challenges, and the Solana Ecosystem
A savvy SOL whale recently sold substantial coins and achieved extraordinary profits on his holdings. The container of SOL is anticipated to contain approximately 0.5 million units of the cryptocurrency, as indicated by the initial holdings.
The cache, sold to the prominent cryptocurrency exchange Binance, was valued at approximately $44 million at the time of sale.
In the interim, a few investment asset management firms are attempting to secure the United States Securities and Exchange Commission’s (SEC) approval for their Solana ETF filings. Canary Capital, VanEck, and 21Shares have submitted the S-1 registration statements for the offering.
Their application results would significantly impact Solana’s price and future prognosis. These ecosystem updates support the cost of the coin despite Solana continuing to face outage challenges.
