Solana Surpasses Ethereum in Daily Wallet Activity, Potential Return to $140 for SOL?

Solana’s Resurgence Continues, Daily Active Wallets Surpass Ethereum

Solana (SOL), the fourth-generation blockchain, has recently made a significant comeback based on on-chain metrics. According to Artemis data, Step Data Insights on X highlighted that Solana’s daily active wallets have surpassed Ethereum’s, the pioneer smart contract platform. This notable development coincides with SOL prices breaking through resistance levels over the past few months.

According to Step Data Insights, Solana’s daily active wallets currently stand at around 400,000, slightly exceeding Ethereum’s count. This surge in activity suggests that Solana is attracting a growing user base, with more individuals exploring its ecosystems, including DeFi, NFTs, and other protocols.

Additional data from Artemis indicates that Solana also outperforms Ethereum in daily transactions. While Ethereum leads in DeFi total value locked (TVL), Solana’s low fees and scalable environment may explain why users are opting for this high-performance network.

The resurgence of Solana can be attributed to recent favorable price action in Q4 2023. Step Data Insights notes that SOL has risen by over 210% in the past three months, while Ethereum’s gains have been capped at 39% during the same period.

The coin has experienced a significant rise from around $17 to approximately $70 in the last three months, compared to Ethereum’s expansion from roughly $1,500 to about $2,300 recorded on December 6.

This recovery indicates growing investor confidence. However, the future trajectory of SOL’s gains remains uncertain. Examining the daily chart, prices have been moving horizontally from H2 November to early December 2023. The immediate resistance line is at $70, and with SOL inside a bull flag, any upswing above November 2023 highs could be the catalyst for a potential surge to April 2022 highs of $140.

Spot Bitcoin ETF Hopes, Firedancer Lifting Solana

Altcoins, including Solana, have been experiencing upward momentum as the crypto market recovers. Despite the FTX estate being permitted to liquidate the coin in secondary markets to repay creditors, SOL remains relatively firm following a court ruling.

Hopes of the Securities and Exchange Commission (SEC) approving the first Bitcoin ETF have also positively impacted Solana. Additionally, the recent release of Firedancer, a validator client developed by Jump Crypto, on the testnet has provided support for SOL.

The Firedancer client is expected to make the Solana network more resilient and performant. Scheduled to go live in H1 2024, it is anticipated to improve Solana’s reliability once operational.

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