NAIROBI (CoinChapter.com)— Solana’s native token, SOL, experienced a sharp price rally, outperforming Ethereum in recent trading sessions. The surge coincided with the launch of the “Official TRUMP” memecoin on Solana’s blockchain, propelling its total value locked (TVL) to a new all-time high of $12 billion.
Solana TVL crosses $12B as TRUMP memecoin fuels rally
On Jan. 19, Solana’s TVL surpassed $12 billion for the first time since November 2022, according to DefiLlama data. The blockchain saw a nearly 50% increase in its TVL over the past week, reflecting strong investor interest fueled by the TRUMP memecoin. This milestone highlights Solana’s recovery from the FTX collapse, which led to a sharp decline in its ecosystem.
SOL/USD also reached a new all-time high of $255.38 on Jan. 19, representing a staggering 3,000% price surge since its December 2022 low of $7. The network’s daily transactions grew by over 20% during the memecoin frenzy, indicating renewed activity and user engagement.
Solana Outshines Ethereum and Other Competitors
Solana’s 46% growth in TVL over the last 30 days outpaced its layer-1 competitors, including Ethereum, which saw a 1.87% decline in the same period.
Analyst Greeny linked Solana’s rise to the TRUMP memecoin’s popularity, highlighting how it increased user activity and liquidity in the network’s decentralized applications. He also noted that rumors of a Trump administration-backed crypto reserve added to the bullish momentum.
Analysts size up SOL’s next move
Analyst REX questioned whether Solana can sustain its rally above $300 without a bigger catalyst than the Trump memecoin. Meanwhile, analyst Greeny predicted further upside, citing potential medium targets at $370 and $425, and a long-term projection near $685.
Polymarket data showed a 40%-50% probability of SOL hitting $300 by Jan. 31, though those odds remain volatile.
Technically, SOL’s price shows a bull flag on the four-hour chart. The pattern suggests a further 40% rise from current levels, placing the next upside target near $360.
The daily relative strength index (RSI) stands at 58, below the overbought threshold of 70, indicating that there may be more room for price growth if bullish momentum persists.
Solana’s rally, driven by the Trump memecoin launch, highlights the network’s capacity to attract activity and boost value. However, sustained growth will depend on broader market trends and the network’s ability to maintain momentum beyond current catalysts.