By: Eliza Bennet
Solana's native token (SOL) displays a substantial surge of 5.5% on Nov 28, attributing its rise not only to the broader cryptocurrency market's performance amidst a faltering macroeconomic environment but also to the Solana network and its ecosystem. New data indicates that Solana's user engagement has seen a significant rise, marking an increase from 138,000 unique transaction initiators, or 'first signers', at the beginning of November, to 270,000 by Nov 17. The Solana network shows consistent yet varied user participation with variations in user participation and SOL balances, suggesting a large user base ranging from casual to substantial investors.
Analysts suggest SOL's momentum surged particularly as it competes with Ethereum, grappling with high transaction fees. SOL stands strong as a more favorable choice for various applications, including gaming, social networks, NFT launches, and collectibles due to its significantly lower transaction cost. Activity data further amplifies the positive outlook for Solana, revealing a 10% and 9% rise in active addresses and DApps volume respectively, compared to Ethereum's 21% decrease in volume. Solana's NFT activity, in particular, saw a marked increase of 35% surpassing other blockchain networks.
In the backdrop of these developments, expert predictions project a bullish run for SOL with its potential to hit the $80 mark. While the downturn of the dollar amidst the Federal Reserve's forthcoming decline in interest rates and inflation over the long-term 2% target has steered fixed-income investors to risky assets and hedge funds favoring cryptocurrencies, Solana's user-friendly transaction costs, robust network growth, and increased NFT and DApps activity keep it in a strong position for further growth.
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