In addition to the increasing developer activity on the Solana network, SOL has shown signs of recovery after a recent period of struggle.
The Solana blockchain network has achieved an important milestone with over 2,500 developers actively contributing to its open-source ecosystem on a monthly basis. This growth in developer numbers is a significant achievement for Solana, as it has made a focused effort to expand its community of builders.
Having a consistent group of developers is crucial for any layer-1 protocol that wants to succeed by launching decentralized applications to the public. The skills and dedication of these builders directly influence what can be accomplished on the network.
Despite being a relatively new blockchain that launched in March 2020, Solana has quickly established itself as the second-largest developer ecosystem in the blockchain industry, right after Ethereum. More than half of these developers have at least three years of programming experience, which indicates a high level of expertise in developing the network’s infrastructure and tools.
Solana has also made progress in retaining developers by improving their onboarding processes. Developer boot camps and educational resources provided by organizations like the Solana Foundation, SuperteamDAO, and mtnDAO have played a significant role in attracting builders to Solana. Over 50% of developers who joined Solana’s ecosystem in 2023 have remained active for at least three months, demonstrating the increasing retention rates within the network.
SOL Price Eyes Potential Breakout
In addition to the increasing developer activity on the Solana network, SOL has shown signs of recovery after a recent period of struggle. Despite the challenges, it has still managed to maintain a profit of over 30% in the last four weeks. In the current week alone, the coin has surged by 16%, going from $89 to $103 at the time of writing. This surge in activity may also contribute to the rising price, as investors anticipate further price growth with the emergence of more solutions built on Solana.
Renowned cryptocurrency analyst Ali suggests that Solana has a positive outlook that could potentially drive the price of SOL up by 50% if it can overcome a crucial resistance level. He highlights that Solana has formed a bullish pattern known as a bull flag on its hourly price chart. Bull flags typically indicate that the buyers are in control and the price may continue to rise, especially after a significant breakout.
On the hourly chart, #Solana is showing signs of forming a bull flag. A decisive close above the $110 resistance level could be the catalyst for a significant upward move!
— Ali (@ali_charts) January 9, 2024
As per the analyst’s tweet, if Solana manages to break through the $110 resistance level, it could experience a substantial upward movement. Based on this pattern, the projected target for SOL is $163, aligning with the expected outcome of the bull flag.
With Solana developers actively working on the blockchain’s infrastructure and a renewed interest from users, analysts generally hold an optimistic view of SOL’s prospects in the short and long term. However, the token still faces challenges from macroeconomic factors and the risk of a decline if buyers are unable to sustain the price above important levels.