3 - 5 minute read
Solana, the smart contract protocol, is predicted by crypto analyst to experience rapid growth due to bullish signs in two on-chain metrics; daily active users count and the number of new wallets created on the blockchain. Ethereum, the leading cryptocurrency, has a lower ratio of daily active users and new addresses at 17.23% compared to Solana’s 49.36%, indicating the latter could be gearing up for a surge in price.
Solana is a relatively new cryptocurrency that has been gaining increasing attention for its potential to compete with Ethereum. The blockchain network has faster transaction speeds, lower fees and is built for decentralized applications. Since its launch, Solana’s ecosystem has been thriving, evident from the surge in the number of users and new wallets created on its network. The recent bullish on-chain metrics suggest the cryptocurrency could be a promising investment for traders.
“We do expect SOL to grow real fast, and I would much prefer a higher ratio… I’d rather be 49.36% versus 17.23% because every chain depends on its lifeblood.”The anonymous host of InvestAnswers
Solana’s growing user count is an indicator of the network’s “lifeblood,” which could lead to a surge in price. The blockchain’s ability to handle deep-end activity, such as various activities happening on the blockchain, is a factor that could attract more users to its network. Traders can expect Solana to witness rapid growth in the future based on the bullish on-chain metrics.
Traders looking to invest in Solana should keep an eye on its daily active users and new wallet count, which could signal better growth. The cryptocurrency’s fast-growing ecosystem presents an opportunity for traders to have better returns on their investments in the long run. However, traders should also note that cryptocurrency investments come with inherent risks such as volatile price swings and should practice due diligence before making any investment decisions.
The Bottom Line
Solana’s rapidly growing ecosystem presents an opportunity for traders to invest in the cryptocurrency, with a potential for better returns on their investment. Traders should consider keeping an eye on its bullish on-chain metrics such as the daily active user count and the number of new wallets created on its network. Despite its potential, traders should also note the inherent risks associated with cryptocurrency investments, such as volatile price swings.