30s Summary

Solana (SOL) reached a record price of $264.50 on November 22, due to Bitcoin’s strong performance and the trend for memecoins. Over $6 billion was traded on Solana’s network in a single week, contributing to nearly half the total market. The token’s value occasionally eclipses that of Ethereum, and its ultra-low transaction costs have lead to heightened popularity. Nevertheless, its reliance on optimistic futures traders could trigger a price collapse. Despite this risk, the token remains strong due to low fees, strong decentralized app activity, and resilient futures markets.

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Hey, crypto buddies! You’ve probably heard about the Solana token – SOL, right? This coin literally blew up and reached a record price of $264.50 on November 22. This happened thanks to Bitcoin, which is bulldozing its way towards $100K, as well as the internet’s current obsession with memecoins. Some other tokens based on Solana even doubled in value last month. We wonder, can SOL make it to $350?

Last week alone, there was more than $6 billion in trading activity on Solana’s network, making Solana responsible for almost half of the total market. This is truly unheard of when compared to other networks, especially when you consider how cheap it is to complete a transaction on Solana, compared to pricier networks like Ethereum, BNB Chain, and Polygon.

Some market gurus are certain that we haven’t witnessed the peak of SOL’s rise, given that it’s still 70% below Ethereum’s market cap. However, you got to remember that the field is packed with competitors, so that trajectory might shift any moment.

Solana’s magic lies in being a magnet for memecoins, resulting in crazy-high app activity. The value locked in their network is around $9.2 billion, which surpasses that of BNB Chain and equals the joint value of Ethereum’s six leading layer-2 solutions.

By offering lower entry barriers, Solana has rocked the boat enough to rival Ethereum’s top six tools while making it super easy to use wallets like Phantom or Solflare with decentralized apps (DApps), reaching a killer trading volume of $41.1 billion last week on Solana DEX.

Despite Solana’s rise, other top 10 networks experienced a huge drop in trading volumes on their decentralized exchanges (DEX). For instance, in the past week, a whopping 29.3 million unique active addresses interacted with DApps on Solana’s network. In comparison, NEAR could only manage 9.6 million addresses, opBNB had 7.8 million, and Base had just 4.6 million.

The lure of memecoin trading has been so strong that it’s pulling in famous Bitcoin enthusiasts like ‘TylerDurden’. He let his followers know that Solana tokens’ potential falls in the alluring ‘Pumpenomics’, advising caution against influencers with fishy methods.

Gotta mention though, SOL’s price can be a risky deal due to its reliance on futures traders who are generally optimistic. A mere 5% intraday price drop can trigger the liquidation of a 20x leveraged position.

Despite these odds, there’s nothing overly alarming. At one point, the funding rate for SOL futures reached around 4.2% per month on November 22 but has now settled at a stable 2.4% monthly rate for long positions.

Given its incredibly low fees, Solana’s onchain data, strong DApps activity, and the resilience of SOL futures markets suggest a strong bullish trend that could potentially take the price way beyond the current all-time high of $264.50.

Just remember, while this is pretty exciting, it’s not financial advice. Always do your own research and trade responsibly!