# Solana Price Surges Amid Increasing User Engagement

Solana (SOL) is experiencing a significant uptick in price, buoyed by a surge in user engagement. Analysts predict SOL could jump another 150% following its recent price breakout.

Currently, Solana is trading 7% higher at $140, with daily trading volume spiking by 85% to reach $2.56 billion. This increase is attributed to growing network adoption and heightened investor expectations. However, despite the bullish momentum, some investors remain highly anxious.

# Solana Rallies Amid Long-Term Holder Anxiety; Network Activity Gains Attention

Crypto analyst Ali Martinez notes that fear among long-term Solana holders is escalating. He suggests this uncertainty presents new opportunities for strategic investors. Martinez stated, “Historically, these moments align with the investment adage ‘be greedy when others are fearful,'” indicating that the current price rise could be driven by value-based buying, potentially sparking a sustained uptrend.

Recent reports highlight that Solana network adoption has reached an all-time high. On-chain data reveals that over 11.09 million addresses hold Solana tokens, signaling increased user engagement within the Solana ecosystem.

# Market Analysts Positively Assess SOL’s Outlook

Solana’s price has risen 6.97% to $139, with daily trading volume surging 94.9% to surpass $2.67 billion. According to Coinglass data, SOL’s open interest has climbed 8.6% to reach $5 billion, while liquidations in the past 24 hours amounted to $8.82 million.

SOL recently broke through a key resistance level at $137, enhancing its prospects for further price gains. Prominent crypto analyst Crypto Curb remarked, “This breakout signifies the end of the downtrend that began after the January 20 peak,” suggesting the onset of new upward momentum. He projected SOL’s next target at $420, anticipating another potential rally.

# Solana Co-Founder Questions the Need for Layer 2 Solutions

Meanwhile, Solana co-founder Anatoly Yakovenko has raised doubts about the necessity of Layer 2 (L2) scaling solutions amid Solana’s price surge. He argues that Layer 1 (L1) blockchains can offer faster speeds, lower costs, and enhanced security compared to L2.

On the X platform (formerly Twitter), Yakovenko stated, “L1 is faster, cheaper, and more secure. L1 doesn’t get hindered by data availability issues or compromised by complex fraud-proof mechanisms and multisig security threats.” This statement counters an Ethereum contributor who downplayed the need for L1 development, emphasizing L2’s speed and cost-efficiency.