Solana, the ultra-fast blockchain network, has seen a remarkable resurgence in activity and adoption during the fourth quarter of 2022. Both the price of Solana’s native token (SOL) and key network usage metrics have left Ethereum in the dust this quarter.
Keypoints
- Solana (SOL) price has increased exponentially in 2022, up over 700% year-to-date and reaching a new yearly high of $86.80
- Solana’s daily user activity and transactions have surged over 300% in Q4 2022, far outpacing Ethereum
- Strategic token airdrops like Pyth Network’s 250 million token drop have driven increased engagement and demand
- Solana has become the 2nd largest chain by DEX volume, with over $870 million in volume in December
- Searches for “Solana” on Google are up 250%, showing heightened public interest
The price of SOL has skyrocketed in 2022 after bottoming out at $9.68 on January 1st. SOL cleared two key long-term resistance levels this year on its way to setting a new all-time high of $86.80 on December 21st. This represents a staggering 750% price increase for SOL just in the past year.
The weekly Relative Strength Index (RSI) shows SOL with continued upside momentum, although the daily RSI is demonstrating some bearish divergence after the latest push to new highs. This could signal a short-term top is in for SOL before the next leg up.
Beyond the price gains, Solana has also seen a huge boost in activity in Q4 2022 according to on-chain analysts. Daily user activity on Solana is up 400% in the past three months, massively outpacing Ethereum’s 3% user growth in the same period.
Much of this usage spike can be attributed to recent token airdrops on Solana-based protocols which have attracted new users. For example, the Pyth oracle network airdropped 250 million PYTH tokens worth $77 million in November. This along with other project launches has made Solana the leader this quarter for token distributions.
The boost in transactions from airdrops has flowed into Solana’s burgeoning DeFi ecosystem. In December, DEX volumes on Solana surged to over $870 million – a 255% increase from the start of Q4.
This enormous volume now makes Solana the 2nd largest blockchain by DEX activity, positioning it to challenge Ethereum’s dominance in decentralized trading. Major industry leaders have taken notice of Solana’s speed and low costs, with Cathie Wood of ARK Invest commenting favorably on Solana’s advancements versus Ethereum.
Beyond raw on-chain metrics, another barometer for interest in Solana can be seen in Internet search trends. From October to December 2022, Google searches for “Solana” shot up by 250% – the highest search popularity Solana has seen since its previous peak last year.
This proves that the recent price action, airdrops, protocol launches and trading volumes aren’t just making waves on-chain, but also capturing the public’s curiosity. As more users discover Solana’s nearly free, sub-second transactions, this interest seems poised to continue expanding in 2023.
