Solana (SOL) Outperforms Altcoin Market, Targeting New Highs as Bitcoin (BTC) Eyes $260K

Solana's token (SOL) rose 35% from November 5 to 11, reaching a peak of $222, the highest since December 2021. This rebound has led traders to speculate whether Bitcoin will rise to an all-time high of $260, especially as institutional capital stabilizes and expectations for clearer U.S. regulation grow, following Bitcoin's approach to $90,000.

Solana's native token (SOL) has surged 35% from November 5 to 11, reaching a peak of $222, the highest since December 2021. The rally had traders speculating whether Bitcoin will rise to an all-time high of $260, especially as institutional capital stabilizes and expectations for clearer U.S. regulation grow following Bitcoin's approach to $90,000.

SOL has outperformed the broader altcoin market, rising 33% in the same period ending October 11. Part of the investor optimism towards SOL can be attributed to the expanding collaborative activity on the Solana network, as measured by the total value locked (TVL).

Solana's TVL increased to $7.6 billion on November 10, reaching the highest level since December 2021. Major decentralized applications (DApps) like Jito, Raydium, and Drift, along with Binance's Liquid Stake, have contributed significantly to a 36% growth in deposits.

But Solana's activity surge isn't limited to memecoin trading.

Solana has faced criticism for its reliance on memecoins, including Dogwifhat (WIF), Bonk (BONK), and Popcat (POPCAT), all of which have a market capitalization above the $1.5 billion threshold. Decentralized token creation platforms like Pump have been a key driving force behind Solana's decentralized exchange (DEX) trading volume.

For the week ending November 2, Solana's weekly DEX trading volume surged to $17.1 billion, the highest level since March 2024, accounting for 26% of market share, surpassing Ethereum—the blockchain focused on leading DApps. Solana also charged $8.82 million in monthly fees, which is crucial for addressing network security issues.

Meanwhile, the Ethereum network, with a TVL seven times higher than Solana, earns $131.6 million in fees every month. Similarly, another blockchain focused on foundational scalability, Tron, has collected $49.1 million in fees over the past 30 days. These figures do not include revenue from the broader ecosystem, where Jito contributed $100.2 million and Raydium contributed $83 million.

Evaluating platforms solely based on TVL and fees can be misleading, as not all DApps require high transaction volumes to be significant. However, these factors are critical for attracting new users, paving the way for sustainability, and increasing the demand for accumulating and using SOL.

Magic Eden (Solana's leading NFT marketplace) recorded 77,160 active addresses in the past 30 days. In contrast, OpenSea (a similar service on the Ethereum network) had 37,940 active addresses during the same period.

The data provides conclusive evidence that the Solana network has attracted users beyond the memecoin craze, suggesting that the SOL price may continue to benefit. However, it is essential to analyze SOL perpetual futures contracts to determine if traders are using excessive leverage.

Positive funding rates indicate that long positions are paying leverage costs; in a neutral market, leverage costs typically range from 0% to 2% monthly. A recent spike to 5% on November 10 shows temporary excitement, but the latest data from November 11 indicates that leverage costs have returned to a neutral level of 1.8%.

In terms of on-chain and derivatives metrics, SOL appears poised to reach new historical highs, supported by increased network activity without signs of excessive leverage.

doge to $1

Dogecoin (DOGE) has continued to maintain strong upward momentum for four consecutive days, with prices rising nearly 50% in the past 24 hours, sparking expectations of reaching the $1 target price.

Today, DOGE has broken above $0.41 for the first time since hitting an all-time high of over $0.70 in May 2021. Data shows that over the past week, DOGE has provided investors with more than 150% returns and has nearly doubled in value over the past 30 days.

Futures contracts associated with DOGE have accumulated losses exceeding $68 million. This marks the largest liquidation of the token this year, with the number of open contracts approaching the highest level since April, most of which are liquidated short orders anticipating a decline in DOGE's price.

The current rally is largely driven by Musk's optimistic sentiment towards the Trump administration. Musk has discussed establishing a 'Department of Government Efficiency' (abbreviated as DOGE) to enhance the efficiency of government spending. This has sparked traders' expectations that mainstream media and retail trading circles will pay more attention to DOGE.

Recent price trends have prompted some cryptocurrency traders to set a price target of $1 for DOGE—this target has been anticipated since the token traded