Is Solana Primed for Further Gains After Reaching New All-Time Highs?

Solana’s native token, SOL, reached a new all-time high of $264.50 on November 22, driven by a combination of Bitcoin’s rally toward $100,000 and a surge of investor interest in memecoins. This milestone marks a significant achievement for Solana, especially as several Solana-based tokens have experienced massive growth, with some jumping over 100% in value in the past month. The question now is: can SOL continue its upward momentum and potentially reach $350?

Strong Performance on DEXs and Robust On-Chain Activity

Over the past week, Solana has sustained more than $6 billion in daily trading volume on decentralized exchanges (DEXs), capturing 45% of the total DEX market share. This remarkable performance stands out, especially when compared to other blockchain networks, given Solana’s ultra-low transaction fees relative to competitors like Ethereum, BNB Chain, and Polygon. Analysts are increasingly bullish on SOL, with some pointing to Solana's market cap of $121 billion, still 70% lower than Ethereum’s, as an indicator of growth potential.

Memecoin Mania Boosts Solana’s DApp Activity

One of the key drivers of Solana's surge has been the memecoin craze, which has sparked record activity on its decentralized applications (DApps). Solana’s total value locked (TVL) now stands at $9.2 billion, giving it a substantial lead over BNB Chain’s $5.3 billion in assets. This marks a sharp rise from late July, when both networks had similar TVLs of around $4.5 billion. For comparison, Ethereum's leading layer-2 solutions — including Base, Arbitrum, Polygon, and others — also collectively hold a TVL of $9.2 billion.

Solana has achieved impressive growth by offering lower barriers to entry for users. The seamless integration of popular wallets like Phantom and Solflare into its ecosystem has played a key role, enabling Solana to reach an extraordinary weekly trading volume of $41.1 billion on its DEXs.

Futures Market Shows Resilience

On November 22, Solana futures saw a funding rate spike to 4.2% per month, signaling strong investor interest. While this rate has since normalized to 2.4%, it remains slightly above neutral, suggesting continued bullish sentiment among long positions. Though Solana’s low transaction fees may skew some on-chain data, the strong DApp activity and the healthy futures market imply that SOL's upward momentum could persist.

Conclusion: Can SOL Hit $350?

With its all-time high of $264.50, Solana has already proven its strength, but many analysts believe the journey isn’t over yet. The combination of strong network activity, low fees, and the ongoing memecoin frenzy points to the potential for further price appreciation. If Solana can continue to build on its momentum and capitalize on its growing ecosystem, the $350 mark could be within reach — though, as always, broader market dynamics and competition will play a role in determining SOL's future performance.