The SOL rally over the past few months has been more than impressive. Despite minor setbacks, the coin has established an unprecedented macro uptrend and currently ranks fifth by market cap.
SOL 4 Hour Price Chart | Source: Tradingview
The price of SOL has increased nearly 60% in the last month. On the flip side, big guys like Bitcoin and ETH only gained less than 20% over the same period.
So the question at the moment is when will SOL continue to shine in the price charts?
What makes the difference
Specifically, one factor that has helped Solana stay relevant and outperform other platforms is the engagement and engagement of the developer community.
According to Solana Labs, the number of developers has increased dramatically in the past few months. At the same time, the quality and speed of their work has improved significantly since the end of October.
Additionally, the metric is hovering around local highs at the time of writing, according to the Santiment chart.
Development activities | The source: mood
Thanks to the above activity, the Solana ecosystem boomed to its peak and was able to host a multitude of new projects. In fact, the infographic created by Solanianas shows the strong growth from March to October pretty well.
The main factors that have contributed to Solana’s growth continue to be increased network usage and the increasing popularity of NFT. According to the data, the cumulative number of NFTs imprinted on Solana is growing at an impressive rate, suggesting that the network is slowly gaining traction in the mainstream marketplace.
The long-term prospects for SOL are currently looking pretty good. Solana has outperformed Cardano in terms of staking, offering the highest reward of over 6.8% for stakers. Rising prices are giving new entrants a boost, and in terms of passive income, that number will continue to rise in the coming days.
In fact, an increasing demand for SOL is to be expected. Accordingly, it will have a positive effect on the price of this altcoin in the long run.
The source: stakingrewards.com
In addition, SOL also held high levels on the Sharpe ratio chart, which shows that investors are getting a very high return for their risk. So unless this ratio goes down, the price will stay high in the future.
Sharpe Ratio | Source: Messari
In addition, this coin receives strong support from community members. The positive mood rises every few hours and can largely overshadow the negative mood – so Solana can achieve more.
Negative mood (pink) and positive mood (red) | The source: mood
Therefore, due to its rapid growth rate and other psychological and profitable factors, SOL is unlikely to fall victim to a possible “crypto winter”.
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According to AMBCrypto