Solana Price Prediction as SOL Blockchain Sees Huge Surge in New Users Following Spike in ETH Gas Fees – Time to Buy?
The Solana network, a layer-1 smart-contract-enabled blockchain protocol famed for its high transaction throughput and low gas fees, has seen a spike in daily users in recent weeks.
As per data presented by Token Terminal, the number of daily active users on the blockchain recently spiked to its highest in nearly 12 months at nearly 400,000.
The spike in daily active users comes at a time when Solana’s major, more established blockchain competitors like Bitcoin and Ethereum have been struggling with heightened congestion.
Bitcoin transactions recent surged to record daily numbers amid the sudden surge in popularity of the new BRC-20 token standard (crypto tokens issued directly on the Bitcoin blockchain, a little like how ERC-20 tokens are issued on Ethereum), all powered by the Ordinals Protocol that introduces inscriptions to the Bitcoin network late last year.
Meanwhile, the Ethereum blockchain is struggling with a sudden surge in meme coin-related transactions as new wave memecoins like Pepe (PEPE) gain significant buzz.
The surge in network congestion on the world’s two most widely used blockchains has gone hand in hand with a spike in transaction fees (referred to as gas fees on the Ethereum network), pushing crypto users to lower-cost blockchain alternatives like Solana.
Despite the positive trend in daily active users on the Solana blockchain, the SOL price continues to languish and was last around $20.50 per token, about 1.5% lower for the week.
SOL is the token that powers the Solana blockchain.
That could be partially explained by the fact that other on-chain metrics, like the blockchain’s daily fees, and trading SOL volumes have failed to pick up.
SOL’s technical outlook, meanwhile, is mixed.
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