Solana's potential for a bullish October is driven by increased network activity, strategic partnerships, and positive market sentiment, according to analysts.
Ryan Lee, Chief Analyst at Bitget Research, argues that heightened activity on the Solana network, along with key partnerships, sets the stage for a bullish outlook. "Given the current market sentiment, increased activity, and the ongoing development of the Solana ecosystem, we expect Solana to be more bullish than bearish in October, potentially reaching a price range of $160 to $180," Lee stated in an email to The Block.
Lee noted that Solana's $110 support level has shown resilience during market downturns, including the early August liquidation event. He highlighted Solana's consistent performance during recovery phases for high-market-cap tokens.
The memecoin sector within the Solana ecosystem has displayed strong growth. Lee emphasized that "the meme sector in the Solana ecosystem has consistently been one of the most robust during rebounds."
Onchain data reveals a significant increase in daily active addresses on Solana in September, averaging over three million users daily compared to previous months when numbers remained below one million, according to Tristan Frizza, Founder of Zeta Markets.
Frizza noted that, following the Breakpoint event in Singapore in September, where Solana shared updates about Firedancer and Frankendancer, there has been considerable interest and excitement in the Solana ecosystem overall.
Lee and Frizza’s insights are reflected in the network’s total value locked (TVL), which has surged to approximately $5.5 billion, marking a multi-month high. The top three protocols in terms of TVL on Solana are:
Comparing decentralized exchange activity, Solana's Raydium has seen a rise in transactional activity, while Ethereum's Uniswap has experienced declines in certain metrics.
Lee emphasized that growing institutional interest is crucial for Solana’s long-term prosperity. "The support from Franklin Templeton and Citibank is a significant positive development. Franklin Templeton’s plan to issue a mutual fund on the Solana network is particularly important for increasing Solana’s appeal to institutional investors," he added.
This sentiment is echoed by Ryze Labs Managing Partner Matthew Graham, who suggested that Solana may begin challenging Ethereum’s dominance in the institutional space. "Watch for Solana to start chipping away at Ethereum’s institutional mindshare. The technology is simply better," Graham stated in an email to The Block.
Despite this bullish outlook, whistleblower Edward Snowden expressed concerns about the network's centralization at Token2049.
As of the latest data, Solana's price decreased by over 5% in the past 24 hours, trading at $147.58. Bitcoin dominance stands at 53.8%, while ether dominance is at 13.3%, according to CoinGecko.
Disclaimer: This article is for informational purposes only and does not constitute legal, tax, investment, or financial advice.
