TRUMP memecoin helps SOL price beat Ethereum — Solana’s TVL jumps to $12B

Solana (SOL) price hit a new all-time high of 0.00936 against Ether (ETH) on Jan. 19 before retracing the current level of 0.0769.

SOL’s impressive performance in recent days can be attributed to the memecoin associated with incoming US President Donald Trump, Official TRUMP ($TRUMP), which has boosted interest in Solana, leading to a surge in both its price and trading volume. 

Related: Donald Trump’s memecoin drops 38% as wife Melania launches token

Moreover, the Solana network’s total value locked (TVL) crossed the $10 billion mark for the first time since November 2022 and reached a new all-time high of over $12 billion.

Solana TVL hits a new-time high of $12B

The frenzy around the Official TRUMP memecoin on Solana saw SOL/USD rocket to all-time highs on Jan. 19, alongside a spike in the total value locked (TVL).

On Jan. 20, Solana network DApps collectively held over $12 billion in SOL, representing a near 50% increase over the last seven days, as per DefiLlama data.

In the meantime, Solana DeFi TVL continues to shatter ATHs

The activity on Solana is insane right now, with more people discovering opportunities far beyond just memecoins.

It’s the perfect environment for tokens like $JUP, $JTO, $CLOUD, $KMNO to thrive—and for $MET, $VAULT,… pic.twitter.com/o7X6qXaD5F

— nxxn (@sol_nxxn) January 20, 2025

Solana’s TVL has been on a steady upward trajectory, crossing the $10 billion mark on Jan. 18, levels last seen in November 2022, just before the collapse of FTX — an event that triggered a 71% drop in SOL price to $7 in December 2022.

SOL price is up 3000% since then, accompanied by a 5,800% jump in TVL over the same timeframe.

The 46% surge in Solana’s TVL over the last 30 days is significantly higher than other top layer-1 blockchains such as Ethereum, Tron and the BNB Smart Chain (BSC). Notably, Ethereum’s TVL has actually contracted 1.87% in the past month.

Related: ‘Buy crypto’ and ‘Solana’ search volumes surge amid TRUMP meme frenzy

The number of daily transactions on the Solana blockchain has also increased from 45,881 to 57,084 between Jan. 17 and Jan. 19 amid the memecoin frenzy, indicating an overall resurgence in network activity. 

How high can SOL price go in January?

Several analysts say that SOL’s price still has more room for the upside in January, particularly as Trump’s administration may create a strategic Bitcoin reserve alongside other crypto-friendly regulatory moves in the coming days.

Meanwhile, Polymarket puts the odds of SOL price hitting the $300 mark by Jan. 31 at 40%-50%.

However, not everyone is bullish as “$300 for SOL could totally be the cycle top,” said pseudonymous crypto analyst REX.

He argues that it is “hard to see any catalyst bigger than TRUMP” to propel SOL’s price above that level. 

At the same time, analyst and trader Greeny said they believe SOL’s price is going “way higher,” setting the two medium targets at $370 and $425. The long-term target is set at $685.

“Several indicators were pointing to Solana outperformance two days ago, and that’s compounded with Trump’s Memecoin and Strategic Reserve rumours.”

From a technical perspective, the SOL price chart shows a bull flag pattern on the four-hour timeframe, as shown below.

Bull flags typically resolve after the price breaks above the upper trendline and rise by as much as the previous uptrend’s height. This puts the upper target for SOL price at $360, a 40% uptick from current levels.

Finally, the daily relative strength index, or RSI, is positive at 58, indicating that there is more room for upside before reaching the “oversold” threshold of 70.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.