Solana is “presenting purchasing opportunities,” according to analyst

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By TP

In the short term, SOL could continue to show high volatility. There are key technological developments in Solana that will end up impacting the price of the cryptocurrency Solana (SOL) is one of the digital assets that has had the highest performance in the last year and investors are looking forward to what may happen in 2025. According to Yavuz Akbay , financial markets analyst, Solana «offers purchasing opportunities» and considers it to be a «solid long-term option» thanks to advances in scalability, security and the growth of its developer base. Among the most notable advances, the specialist highlights the Firedancer application, a high-performance validator client that optimizes transaction speed, scalability and network stability. Its implementation will take place this year. This update will allow increase Solana transaction capacitywith the goal of reaching the goal of 1 million transactions per second (TPS). As BitcoinDynamic has reported, the Solana Foundation organization also announced the Winternitz Vault, a security feature resistant to quantum technology, which will provide greater protection against possible cyber attacks.

On-chain data shows notable growth in activity in the last year. Akbay highlights the increase in the rate of active addresses as an important milestonewhich was 330,000 at the beginning of 2024 and currently exceeds 4.29 million.

Number of active addresses in Solana. Source: The Block. According to data from DeFiLlama, Solana's total value locked (TVL) is $8.265 billion. This is a key metric that refers to the cumulative assets deposited in decentralized applications (dApps) on a network.

Solana TVL. Source: DefiLlama. In this regard, Akbay says that “the overall health of the network is constantly improving” and adds: “Solana's financial operations are becoming easier as the TVL expands. Let's compare Solana's TVL with its competitors so we can analyze it better. Solana’s TVL looks really positive as it is the third token with the highest TVL increase year over year.” Likewise, it highlights that transfers on the network have shown constant growth, exceeding 5,000 million in the second half of 2024. «With an increase of 2,000 million in just nine days of this month, transactions are expected to continue increasing year after year. year,» he emphasizes.

Transactions on the Solana network. Source: The Block. Regarding the price of the asset, the specialist warns that SOL could continue to show periods of high volatility in the short term. “I don't expect Solana to be the best performing token in the altcoin market anytime soon. It is likely that it will enter an environment of stagnation and be suppressed because it is in a clear correction,” he believes. At the time of publication of this note, SOL's price is $176, 33% below the all-time high (ATH) reached on November 23, 2024.

SOL quote from January 2024 to January 13, 2025. Source: TradingView. In that sense, he mentions the impact that the appearance of new memecoins could have on this ecosystem, which would significantly increase activity on the network and, as a consequence, they would raise the price of SOL. As BitcoinDynamic already reported, Solana became the epicenter of the creation and commercialization of memecoins in 2024following the appearance of the pump.fun platform. Another price catalyst for the network and SOL is the possible approval of exchange-traded funds (ETFs) based on this digital currency. So far, companies that have filed applications with the SEC to list their SOL-based ETFs are VanEck, Canary Capital, 21Shares, WisdomTree and Grayscale. Finally, Akbay highlights that “solana is an excellent long-term cryptocurrency” and assures:

“Since I see a high (price) correction potential for SOL in technical terms, I think there will be more buying opportunities for Solana. Therefore, my position on Solana in the short term is “Hold.” Yavuz Akbay, cryptocurrency market financial analyst.