- Solana’s SOL token is gaining momentum, fueled by Bitcoin’s surge and strong trading activity, with a price target of $200 becoming increasingly attractive to traders.
- High staking yields and reduced inflation rates enhance SOL’s appeal, positioning it competitively in the market as it experiences significant growth in decentralized exchange activity and total value locked.
Fueled by Bitcoin’s election-day surge, Solana’s native token, SOL, began the day with a solid 5.3% gain, reaching above $167, As BTC rose past $70,550, SOL’s price target of $200 has garnered significant interest from traders. Learning from the past Solana (SOL) Price Outlook, shared by CNF recent update, Solana (SOL) was on track for a jump above $200 in Q4, soaring past its March high.
as Currently, on-chain data and of derivatives metrics signal continued potential for SOL’s upward momentum. the Solana’s decentralized exchange (DEX) volumes have outperformed Ethereum’s, reaching an impressive $11.86 billion in weekly DEX activity, despite Ethereum’s advantage in total value locked (TVL).
In addition, Solana’s TVL saw a 38% increase over three months, benefiting from gains in liquid staking protocols like Jito and Marinade. While Solana holds a relatively lower $6 billion in deposits, its $20.5 million in weekly transaction fees is closing in on Ethereum’s $22.6 million, emphasizing the network’s growth and user engagement.
Strong Staking Yields and Reduced Inflation Support SOL’s Appeal
SOL’s staking offers a high 6.5% yield, with 66.9% of circulating supply participating in validation, which contrasts sharply with Ethereum’s 28.6%. As of today, Solana (SOL) is currently trading at the price of $187.02 surged by 14.02% in the past day and 5.64% in the past week. See SOL price chart below.
In the futures markets, balanced demand indicates a neutral-to-mildly bullish sentiment, which may support leverage buying if election results and Fed decisions align favorably, pushing to the SOL toward the anticipated $200 level.This high staking rate, alongside Solana’s reduced inflation rate of 5.4%, makes the network attractive for long-term holders.
