Bitcoin’s rally, surging past its ATH to hit the $75000 mark on November 6, triggered an upswing in Solana's (SOL) price, which gained 5.3% to go beyond the $167 mark.
This BTC price surge stirred the crypto market on US election results day, making traders believe that SOL could also rise to $200. The token is on track to go above $200 in Q4, which was its March high point.
The derivatives metrics of Solana, along with its on-chain data, indicate that the digital asset will continue its upward price movement. Earlier, the SOL DEX volume flipped the weekly DEX activity of Ethereum (ETH), reaching $11.86 billion.
This happened despite the total value locked (TVL) of Ethereum being higher than Solana. SOL’s TVL increased 38% in the last three months as it gained from Jito and Marinade staking protocols. Although Solana’s deposits are $6 billion lower than Ethereum's, the blockchain is nearly equal to ETH in weekly transaction fees. SOL and ETH have weekly transaction fees of $20.5 million and $22.6 million respectively. The surge in transaction fees speaks of the network's high user engagement and growth.
In terms of yield, Solana is better than Ethereum as SOL is providing a 6.5% yield with a 66.9% circulating supply while ETH is doing the same with a 28.6% circulating supply.
Solana is currently trading at $187.02, a 14.02% surge in the last 24 hours while ETH is at $2663 with a gain of 8.89%. The SOL price chart shows that the coin has gained 5.64% in the last 7 days.
The balanced demand for Solana in the futures market suggests that the digital asset is facing a neutral to mild bullish sentiment which could result in more buying in the aftermath of the US election results and federal rate cut. This could ultimately push SOL towards the $200 level.
The 5.4% reduced inflation rate of Solana along with its high staking rate is making more crypto investors hold the coin for the long-term.