Solana price has continued to outperform Ethereum in October as its ecosystem continued gaining traction among investors and developers. The SOL token jumped by 14% during the month, while ETH fell by 2%.
This is a trend that has been happening for a long time as Ethereum has risen by just 39% in the past 12 months, while Solana rose by over 300%.
Solana DEX volume
A likely reason for this performance is that Solana has attracted more developers, who love it for its faster speeds and low transaction costs.
For example, the biggest players in the Decentralized Public Infrastructure (DePIN) like Render, HiveMapper, and Helium run on Solana’s blockchain.
Solana is also dominating in the meme coin industry. In addition to Bonk, which was launched in 2021, tokens like Popcat, Dogwifhat, and Cat in a dogs world have become highly popular. Altogether, these coins have accumulated a market cap of over $12 billion.
All this has led to Solana flipping Ethereum in terms of DEX volume in October. Data by DeFi Llama shows that Solana’s DEFI networks processed tokens worth over $52 billion during the month, a figure that was higher than Ethereum’s $42 billion. It was the second month this year after July that Solana DEX networks handled more volume than Ethereum.
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Solana may continue to attract more developers in the coming months as dissatisfaction with Ethereum continues. Its biggest competitors will be Ethereum layer-2 networks like Base and Arbitrum, which are gaining substantial market share.
Solana price forecast
SOL chart by TradingView
The daily chart shows that the SOL token bottomed at $122.61, where it failed to move below in April, May, June, July and August. It made a bearish breakdown below that level but it turned out into a false breakout.
The coin has now formed a golden cross pattern as the 50-day and 200-day moving averages have crossed each other. In technical analysis, this is one of the most bullish patterns in the market.
Solana has also jumped above the descending trendline that connects the highest swings since March this year. Therefore, there is a likelihood that the SOL token is on the cusp of a strong bullish breakout, with the next point to watch being the psychological point at $200.
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