IMPORTANT POINTS:
- Solana continues its rise after breaking the $20 barrier, up 10% in the last week.
- The number of weekly active users on Solana has increased dramatically to 3.6 million, contributing significantly to the recent price rally.
- Solana’s innovative features, such as programmable NFTs and NFT compression, along with its low-cost, high-performance environment, are attracting new users.
After breaching the $20 barrier earlier this week, Solana (SOL) continues its upward trajectory, supported by increasing user engagement and recent upbeat comments from the project’s co-founder.
Over the past week, the price of SOL has risen roughly 10%, pushing the cryptocurrency’s market capitalization from $7.6 billion to $8.4 billion. At the time of writing, Solana was trading around $21.14, up 1.5% in the last 24 hours.
Most of SOL’s gains came during the week, as the token’s price action over the past month remains in the red, down close to 4%. However, so far this year, the price of the Solana has risen by an impressive 112% from $9.99 in early 2023.
Solana is currently facing a resistance level of $21.40, which if broken could potentially position the cryptocurrency for another big move higher towards the $25 level.
Crypto expert Altcoin Sherpa pointed to a crucial support level at $20.73, highlighting this area as ‘a dangerous place’ for SOL and if broken would likely push the token price down to the 14-15 range. USD.
On the other hand, the next obvious resistance level for the cryptocurrency lies at $26, as noted by trading expert Jimie.
“IF SOL can close above $21.3 then buying might be a good idea . “
Primarily, the latest Solana price rally has been driven by a drastic increase in the number of unique network users.
According to on-chain data, the number of weekly active users on Solana skyrocketed to 3.6 million on May 1, marking a significant 146.58% increase since April 1, according to Dune Analytics data.
After the spike, the cumulative number of unique active users on Solana stood at 39.75 million on May 1, up from 36.15 million a month earlier, the chart shows.
According to Messari research analyst Ally Zach, one of the factors that attracted new users and played a crucial role in their onboarding process is Solana’s shift in approach to accessing apps. In addition, new features such as “programmable NFTs and NFT compression, as well as Solana’s low-cost, high-performance environment, make it an ideal network for consumer applications to thrive,” added Zach.
Over the past year, the focus of these applications has moved across different sectors, from decentralized finance (DeFi), through gaming and non-fungible tokens (NFTs), to a combination of the aforementioned markets.
