Due to Donald Trump's presidential victory, interest in meme coins on the Solana network has surged again, with user activity increasing significantly since early November. This increase in demand has made it likely that Solana's native coin, SOL, will recover its all-time high of $260.
Currently, SOL is trading at a price 6% lower than this peak, and the market is speculating on how quickly it can reach this milestone.
Users flock to Solana for meme coins
Solana-based meme coins have seen significant price increases following Trump's victory on November 5. This rally was led by the squirrel-themed meme coin PNUT, which has surged in value by over 2700% in the past two weeks.
The price surge of this token was triggered by Elon Musk's repeated endorsement of X, followed by the launch of the Department of Government Efficiency (DOGE). In fact, on November 14, its market capitalization reached an all-time high of $2.4 billion.
Another Solana-based meme coin that has seen tremendous growth in the past week is NOMNOM, described as the "hungry hamster of the Solana network." The price of this token has surged by nearly 400% in the past 7 days.
The increased trading activity around these tokens and other small-cap meme coins has led to a significant surge in user demand for the Solana network. According to Artemis, the number of active addresses that have completed at least one transaction on the L1 has reached 6 million, a 14% increase on a monthly basis.
This increase in user activity has also led to a noticeable rise in daily transaction volume. According to Artemis data, over the past 17 days, Solana has processed 45 million transactions, a 7% increase.
Additionally, the activity on Solana network's decentralized exchanges has also significantly increased. Since the beginning of the month, the trading volume on these platforms has surged by 252%, exceeding $6 billion.
SOL price prediction: Reaching all-time high seems likely
As the Solana network's activity has become more vibrant, the likelihood of its native token, SOL, recovering its all-time high of $260 has increased. At the time of reporting, SOL is trading at $244.68, 6% below this price peak.
According to BeinCrypto's SOL/USD daily chart analysis, the bullish momentum on altcoins appears to be continuing. The Elder-Ray Index, which measures the strength of bullish versus bearish forces, currently stands at 55.97, indicating the dominance of the bullish camp.
A positive value suggests strong bullish pressure. If this trend persists, SOL could potentially reclaim and surpass its all-time high of $260.
However, if selling pressure intensifies, the coin's value could drop to $205.99. Failure to hold this level could see Solana's price fall below $200, potentially reaching $163.99.
