Jamie Coutts, chief crypto analyst at Real Vision, says one of the top Ethereum (ETH) competitors may be on the verge of a massive breakout.
Coutts say that the number of active Solana (SOL) addresses has increased by triple digits in percentage terms over the past three months, much more than other smart contract platforms.
He believes that SOL’s recent price correction, combined with the network’s numbers, sets the network up for a big move upward.
“Solana: active addresses increased by 276%, but costs decreased by 11.3%. Price looks like a coiled spring, ready to break out.”
He also shares statistics on other smart contract platforms (SCPs) from the same period:
“On-chain activity update for major SCP networks:
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- Ethereum: Costs have likely reached a cycle low and are up 77%, while price momentum remains weak -21.9%.
- TON: active addresses +208%, fees +103%, but price growth (+26.1%) feels subdued due to Telegram CEO fallout – probably overstated.
- SUI: costs increased by +236%, addresses increased by +74.9%. A higher monetary velocity indicates healthy network growth. (Aptos also shows modest gains.)
- TRON: Crushing it in stablecoin transfers, with fees up 30.4% to $6.39 million/day across 2.1 million active addresses. Strong momentum, near record highs (ATHs).
- NEAR: Growth slowed with slight declines, but ranks second in active addresses (over 3 million).
Statistics in the chain use a moving average over 14 days.”
Solana is trading at $145.33 at the time of writing, up more than 4% in the last 24 hours.
Coutts too highlights that payments giant Stripe announced global support for USDC settlements via the Ethereum (ETH), Polygon (POL) and Solana blockchains.
He believes that progress in payments in crypto is bullish for tier 1 companies like Solana.
“One of the world’s largest payments companies is returning to the fray after a six-year hiatus. Visa, Mastercard, PayPal and Stripe bet on crypto. The only question for investors is whether blockchain rails will be used more or less in the future. Besides store of value Bitcoin, most other use cases – decentralized physical infrastructure networks (DePin), non-fungible tokens (NFTs), etc. – are still trying to find PMF (product market fit).
However, there is no ambiguity about stablecoins and their usefulness for payments and decentralized finance (DeFi). If all else fails, this will be enough to underwrite the network value of layer 1s (L1s) that have achieved initial network effects and some that are underway. The question, as always, is what the right position size is.”
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