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    Solana Token Sees 35% Surge in a Week as Smart Contract Activity and TVL Increase

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    The Solana token (SOL) witnessed a significant boost of 35% in value within a week from October 5th to 11th, reaching a new peak value since December 2021. The increase in Solana’s smart contract activity and the total value locked (TVL), which rose to $7.6 billion, have contributed positively to the token’s surge. Despite its reliance on memecoins, Solana has managed to attract users from beyond the memecoin hype. The SOL’s future prospects will be confirmed by tracking the SOL perpetual futures.

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    The Solana token, SOL, had a big week recently with a 35% increase in value between October 5th and 11th, hitting its highest point since December 2021 at $222. This surge has some traders thinking it could potentially hit its record high of $260 soon, especially since Bitcoin just crossed $84,500 because investors feel confident about more clear regulations in the U.S.

    SOL also did better than most altcoins, which saw a 33% jump over the same six days ending on October 11th. There’s positive buzz about SOL because of a boom in Solana’s smart contract activity, backed by an increase in total value locked, or TVL.

    TVL in Solana rose to $7.6 billion by October 10th, the highest since last December. New decentralized applications (or DApps for short) like Jito, Raydium, Drift and Binance’s liquid staking all helped boost deposits by 36%.

    But it’s not all about trading memecoins (fun, often whimsical digital tokens like DogeCoin) for Solana. Yes, it’s relied a lot on memecoins like Dogwifhat, Bonk, and Popcat, each of which have gone beyond $1.5 billion in market value. And launch platforms like Pump.fun have played a big part in boosting Solana’s decentralized exchange volumes.

    However, Solana’s weekly decentralized exchange volumes upped to $17.1 billion in the week ending November 2nd, a number it hasn’t hit since March 2024. Solana even snagged $88.2 million in monthly fees, crucial for maintaining network security.

    To put this into perspective, Ethereum, a network with a TVL over 7 times higher than Solana, made $131.6 million in monthly fees. And Tron, another blockchain network that focuses on base layer scalability, rounded up $49.1 million in 30 day fees.

    TVL and fees can be misleading when measuring the worth of platforms since not all DApps need high volumes to be significant. But, they’re key for attracting new users and fostering growth, which can lead to more demand for using and owning SOL.

    For instance, Magic Eden, Solana’s top non-fungible token (NFT) marketplace, logged 77,160 active addresses over the past 30 days, as reported by DappRadar. Now, compare this to Ethereum’s OpenSea, which saw 37,940 active addresses in the same timeframe.

    This shows Solana has managed to draw in users beyond the memecoin hype, hinting at the possibility of SOL’s price continuing to rise. However, we can only confirm if traders are pushing their limits by looking at the SOL perpetual futures.

    Remember, this information is for general knowledge. It’s not intended to be investment advice. As always, do your own research and consider consulting with a professional when making investment decisions!

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