As the crypto market is regaining value, popular names like Solana are coming back in red-hot form.
The crypto has witnessed exceptional growth in the past few months. Its value has gone up six times since the December 2022 lows. Similarly, the number of active addresses on the network has doubled. Its TVL (Total Value Locked) has also gone up 2x in recent times.
The numbers are enough to entice crypto traders toward the crypto. However, most of them first want to assess every Solana forecast. SOL is currently trading at 63.59 dollars, showcasing a whopping 53% growth in the past month alone.
Solana did not achieve this growth overnight. Solana was originally introduced as a DeFi hub. However, the network has diversified its operations since then. Now, it offers infrastructure and tools to attract new consumer apps.
For a major part of the year, consumer apps were the primary gateway for new users on Solana. As for its latest comeback, experts believe that it should be attributed to the airdrop announcements and overall market sentiment.
Like any other network, Solana uses airdrops to acquire new users. The network is expected to achieve 30-80% user growth through activities such as new token launches. Besides this, the Jupiter Exchange airdrop and Python Network’s airdrop announcements have also boosted Solana’s user acquisition.
These new decentralized exchanges do not exhibit the behavioral patterns of other airdrop farmers. Usually, farmers and bots perform small-volume, high-frequency transactions on DEXs.
However, Solana’s new users spend more per transaction than existing addresses. In fact, both groups are actively trading small to mid-capital tokens. This hints at an engaged and more sustained user base.
Furthermore, just a handful can equal Solana’s legacy. As a result, the token is understandably becoming a fan favorite among cryptocurrency traders.