On January 19, the price of Solana (SOL) reached a new all-time high of 0.0936 against Ether (ETH) before retracing to the current level of 0.0769. The impressive performance of SOL in recent days can be attributed to the memecoin associated with U.S. President-elect Donald Trump, Official TRUMP (TRUMP), which has increased interest in Solana, causing a surge in both its price and trading volume.
Moreover, the total value locked (TVL) in the Solana network crossed the $10 billion mark for the first time since November 2022, reaching a new all-time high of over $12 billion.
Solana TVL hits a new-time high of $12B
The excitement surrounding the Official TRUMP memecoin on Solana saw SOL/USD soar to all-time highs on January 19, coinciding with a spike in the total value locked (TVL). On January 20, Solana network DApps collectively held over $12 billion in SOL, representing a nearly 50% increase over the last seven days, according to DefiLlama data.
In the meantime, Solana DeFi TVL continues to shatter ATHs.
The activity on Solana is unprecedented right now, with more people discovering opportunities far beyond just memecoins.
It’s the perfect environment for tokens like $JUP, $JTO, $CLOUD, $KMNO to thrive—and for $MET, $VAULT, …
pic.twitter.com/o7X6qXaD5F — nxxn (@sol_nxxn) January 20, 2025
Solana’s TVL has been on a steady upward trajectory, crossing the $10 billion mark on January 18, reaching levels not seen since November 2022. This was just before the collapse of FTX, an event that triggered a 71% drop in SOL price to $7 in December 2022. Since then, SOL price has risen by 3,000%, accompanied by a 5,800% increase in TVL over the same timeframe.
The 46% surge in Solana’s TVL over the last 30 days is significantly higher than that of other top layer-1 blockchains such as Ethereum, Tron, and the BNB Smart Chain (BSC). Notably, Ethereum’s TVL has actually contracted by 1.87% in the past month.
The number of daily transactions on the Solana blockchain increased from 45,881 to 57,084 between January 17 and January 19 amid the memecoin frenzy, indicating an overall resurgence in network activity.
How high can SOL price go in January?
Several analysts suggest that SOL’s price still has room for growth in January, particularly as Trump’s administration may create a strategic Bitcoin reserve alongside other crypto-friendly regulatory moves in the coming days. Meanwhile, Polymarket estimates the odds of SOL price hitting the $300 mark by January 31 at 40%-50%.
Source: Polymarket
However, not everyone is optimistic, as “$300 for SOL could totally be the cycle top,” said pseudonymous crypto analyst REX. He noted that it is “hard to see any catalyst bigger than TRUMP” to propel SOL’s price above that level. At the same time, analyst and trader Greeny mentioned that SOL’s price is going “way higher,” setting two medium-term targets at $370 and $425, with a long-term target set at $685. “Several indicators were pointing to Solana outperformance two days ago, and that’s compounded with Trump’s Memecoin and Strategic Reserve rumors.”
From a technical perspective, the SOL price chart shows a bull flag pattern on the four-hour timeframe, as illustrated below.
Bull flags typically resolve after the price breaks above the upper trendline and rises by as much as the previous uptrend’s height. This puts the upper target for SOL price at $360, a 40% increase from current levels. Finally, the daily relative strength index, or RSI, is positive at 58, indicating that there is more room for upside before reaching the “oversold” threshold of 70.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.