According to Cointelegraph: Solana's native token, SOL, saw an impressive rally of 18% in the seven days leading up to February 13th, pushing its price to $115. This momentum may carry SOL to a $120 price point, according to some market observers.
Driving SOL's bullish trend are airdrops and Solana's ability to provide a cost-effective and user-friendly alternative compared to rival chains. Despite Solana's recent 5-hour network outage, the SOL price remained stable. Solana's close coordination of software development allows for rapid upgrades and improvements that surpass the pace of Ethereum Virtual Machine (EVM)-compatible networks.
Top blockchains 7-day DApps volume rank, USD. Source: DappRadar
SOL's performance often follows Bitcoin's price and general crypto market trends. To determine the sustainability of SOL's rally, monitoring network activity could be essential. However, the initial analysis of DApps activity on Solana shows a 29% contraction in the number of active addresses and only a 4% increase in volumes over the past week.
While this doesn't indicate an imminent substantial price correction risk for SOL, it calls into question the sustainability of a valuation above $120 and subsequent $52.5 billion in the medium to long term. A potential boon for SOL could be a pickup in DApps activity, empowered by the network's capacity, evidenced by processing 91.4 million transactions in just the last week.