- Solana’s network demand hit an all-time high, with a Hot Realized Cap of $9.5 billion, surpassing Ethereum’s $4.1 billion in Q4.
- Despite strong metrics, Solana’s price struggles to reclaim $200, trading at $185 and showing signs of short-term bearishness.
- If Solana dips below $175, a drop to $155 could be on the horizon; however, breaking $200 could spark a rally toward $221.
- Slower realized cap growth compared to Bitcoin and Ethereum highlights Solana’s need for stronger market support.
Solana (SOL) has become a shining star in the crypto world, with its network metrics now outpacing Ethereum, a long-standing titan in blockchain. But despite its growing demand, Solana is struggling to turn those numbers into a price breakout.
Trading at $185, Solana has been unable to break the critical $200 mark, frustrating investors who’ve been hoping for a strong finish to the year.
Solana’s Demand Overtakes Ethereum
The numbers tell a compelling story: Solana’s Hot Realized Cap—a key metric that tracks new capital inflows and network activity—reached $9.5 billion in Q4, more than double Ethereum’s $4.1 billion.
This signals surging interest in the Solana ecosystem, as Glassnode analysts pointed out:
“Solana’s demand has reached new heights, marking the first time it has overtaken Ethereum. The influx of capital is undeniable.”
But here’s the catch: demand doesn’t always equal price gains.
Momentum Slows Despite Strong Metrics
While Solana’s demand is up, its realized cap growth—another critical indicator—has slowed to just 2.19%. By comparison, Bitcoin posted a 10.87% gain, and Ethereum grew by 5.43%.
This slower growth suggests that while people are paying attention to Solana, the network isn’t quite translating that into sustained price momentum.
What’s Next for Solana’s Price?
Right now, Solana is walking a tightrope. It’s holding support at $175, but if that level breaks, the price could slide to $155—a level not seen in months.
On the flip side, if Solana manages to flip $200 into support, it could ignite a rally toward $221, a move that would restore confidence and signal bullish momentum.
Technical analysts highlight this precarious position:
- Key support levels: $175, $155.
- Key resistance levels: $200, $221.
What’s the Big Picture?
While Solana’s price action might be frustrating for short-term investors, its network growth and demand metrics tell a different story. The blockchain is gaining traction, and as the broader market turns bullish, it may only be a matter of time before Solana capitalizes on its momentum.
For now, though, all eyes are on $175 and $200—two critical levels that could define the next chapter for Solana. Will it break through or continue to struggle? Only time will tell, but the demand for this blockchain powerhouse isn’t going anywhere.