Solana has recently taken a step ahead of Ethereum in terms of economic value. When this network first debuted, it was touted as an Ethereum killer and had a clear goal of being better than its rivals.
Solana's real economic value recently rose to an all-time high of $11.08 million, according to a recent analysis by Blockworks. But what does that mean for the network? The actual economic value metric takes into account the minimum viable ecosystem (ease of development of a DAPP) and the network's transaction fees.
Analysis reveals that Solana has achieved parabolic growth in real economic value, even surpassing Ethereum earlier this month. In other words, Solana has become a more attractive network for developers than Ethereum.
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Rising Solana fees support utility expansion
Solana's victory suggests that the network should enjoy a higher level of utility and development. The level of developer activity and the charges incurred by the network are ideal indicators for establishing network adoption from a development perspective.
There's no doubt that Solana's prices have exploded this year, especially in the first half of 2024. Network rates reached a single-day high of $4.95 million on March 18, but then fell to $272,660 on September 7.
Since then, Solana's network fees have rebounded sharply, reaching $4.7 million in the past 24 hours at the time of this article. This was confirmation that dapps are enjoying renewed activity as bullish sentiment has returned over the past few weeks.
Developer activity also fell in the first half of the month. However, recently we have observed a significant resurgence in developer commitment. For context, Solana registered 270 commits in May 2024, which was the month with the lowest developer activity in the past five years.
At the time of writing, October was not yet over, but the number of commits had already jumped to 479. This was the first time Solana registered more than 400 commits in the past six months.
SOL Bear Ready for Acquisition Following Recent Resistance Retest
Solana’s native cryptocurrency SOL is trading in a bullish flag pattern and recently retested the top of the descending resistance line. Thanks to a strong bullish performance this month, it further consolidated its momentum in September and recently hit a high of $179.
The retest of resistance created some selling pressure and the price fell to $173 at press time. This corresponds to a 3.17% decline from the previous day's high, indicating a possible takeover by the bears.
This result was further supported by the fact that prices are overbought at recent local highs. Will SOL price experience a significant retracement? Based on the retest of resistance and past performance, we could witness a significant decline.
However, the potential for a bullish breakout is noteworthy given the recent surge in SOL demand from the active Solana ecosystem. Another possibility is that rampant demand could limit SOL's downside potential. This assumes that on-chain demand for cryptocurrencies remains high.
