Solana (SOL), the blockchain of the fourth generation, has made a noteworthy resurgence, as indicated by on-chain metrics. According to data from Artemis, Step Data Insights on X highlighted that Solana’s daily active wallets have surpassed those of Ethereum, the pioneering smart contract platform. This achievement comes amid SOL prices surging beyond resistance levels over the past few months.
Solana Continues its Revival, Surpassing Ethereum in Daily Active Wallets
As per Step Data Insights, Solana’s daily active wallets stand at approximately 400,000, slightly surpassing Ethereum’s. This surge in activity indicates that Solana is drawing an expanding user base, with an increasing number of individuals showing interest in exploring its ecosystems, including DeFi, NFTs, and other protocols.
Additional data from Artemis reveals that Solana outpaces Ethereum not just in daily active wallets but also in the number of daily transactions. While Ethereum maintains its lead in DeFi total value locked (TVL), Solana’s appeal lies in its low fees and scalable environment, potentially explaining its preference among users seeking a high-performance network.
The recent positive price action in Q4 2023 appears to be a catalyst for Solana’s resurgence. To quantify, Step Data Insights reports a remarkable 210% increase in SOL over the past three months. During the same period, Ethereum’s gains are comparatively limited, with the coin rising by only 39%. For instance, SOL surged from around $17 to peak at approximately $70, while ETH expanded from roughly $1,500 to peak at about $2,300 on December 6.
This recovery signals a growing investor confidence, yet the sustainability of SOL’s gains remains uncertain. The daily chart indicates a sideways movement from late November to early December 2023. The immediate resistance line is at $70, and with SOL forming a bull flag, any upward movement beyond the November 2023 highs could pave the way for a potential rally towards the April 2022 highs of $140.
Prospects of a Bitcoin ETF on the Horizon, FireDancer Boosting Solana
Altcoins, including Solana, are experiencing a surge in value as the crypto market rebounds. Despite a court ruling allowing the FTX estate to liquidate SOL in secondary markets to settle debts, the coin remains relatively stable.
Solana’s prospects have also been positively influenced by expectations of the Securities and Exchange Commission (SEC) approving the first Bitcoin ETF. Additionally, the recent introduction of Firedancer, a validator client developed by Jump Crypto, on the testnet has further supported SOL.
This client is set to enhance the network’s resilience and performance, with the live launch scheduled for H1 2024. Upon its activation, Firedancer is anticipated to contribute to the improvement of Solana’s overall reliability.