The Solana price has increased for four consecutive days while the crypto fear and greed index has stayed in the greed area. The token reached a peak of $190 on Monday, marking its highest level since May 22nd.
The performance of the SOL token has been strong due to the continual growth of the network’s ecosystem. It has emerged as the primary blockchain for developers in the Decentralized Finance (DeFi), Decentralized Public Infrastructure (DePIN), and meme coin sectors.
For instance, some of this year’s most popular meme coins, such as Dogwifhat (WIF), Bonk, and Book of Meme (BOME), are built on Solana’s blockchain.
Solana plays a prominent role in the DePIN industry, with leading networks like Helium and Hivemapper leveraging its technology. These developers appreciate Solana for its swiftness and low transaction costs.
Moreover, this trend has resulted in substantial fees in Solana’s ecosystem. According to data from DeFiLlama, the daily fees have increased this month. On Monday morning, the network generated nearly $2 million in the previous 24 hours, while Ethereum earned $2.6 million.
These are significant numbers since Solana has a smaller total value locked (TVL) of $5.4 billion, while Ethereum has $58.2 billion. Also, Solana has substantially lower fees than Ethereum, with the average transaction costing just a few cents.
As such, these numbers mean that Solana is seeing more transactions. Indeed, a Polymarket poll found that Solana will likely flip Ethereum in daily fees this month.
The next big catalyst for Solana is that more companies will likely file for spot ETFs now that the Ethereum one has already been approved. VanEck has already filed for a spot ETF, while Franklin Templeton has hinted that it will file soon.
Solana price forecast
The daily chart reveals that the Solana token has recovered modestly in the past few weeks. It rose from the key support level of $121.50, which it has failed to move below since April, to $190 on Monday.
That is also an important level since it was the upper side of the cup and handle pattern. Also, the 50-day and 100-day moving averages have made a bullish crossover. The Relative Strength Index (RSI) and the MACD indicators have continued rising.
Therefore, the SOL token will likely have a bullish breakout as buyers target the year-to-date high of $210.
