Solana's price has seen a significant 6.99% surge over the past 24 hours to $24.14, up from $22.57 yesterday. With a market capitalization of $9.97 billion, Solana remains one of the top 10 cryptocurrencies by market cap.

This latest price increase comes after a strong run for Solana over the past week, month and 6 months. SOL has gained 23.80% over the last 7 days, 24.22% in the last month, and 17.43% over the past 6 months. Trading volume over the past 24 hours sits at $593.87 million, suggesting healthy interest in the asset.

Solana's persistent upwards momentum can be attributed to a combination of factors. Strong on-chain activity, development milestones, and a burgeoning NFT and DeFi ecosystem on Solana have supported price gains. Additionally, Solana offers fast transaction speeds and low fees which make it appealing for builders and users.

Let's take a deeper look at some of the key takeaways from Solana's recent price action:

Buying Interest Remains Strong

The 24-hour trading volume of nearly $600 million indicates that buying interest in Solana remains strong. The volume level suggests that new money is continuing to flow into SOL, providing upside price pressure.

High trading volumes are typically a positive signal, as they demonstrate that an asset has liquidity and that new capital is entering the market. Sustained high volumes, as seen with Solana, can propel further price rises over time.

Technical Indicators Turning Bullish

From a technical analysis perspective, Solana looks to be strengthening after breaking through resistance around the $22 level. The moving average convergence divergence (MACD) has crossed into positive territory on the daily chart, a bullish signal.

Additionally, the relative strength index (RSI) is rising but not yet overbought, suggesting room for more upside. The breakout above $22 combined with improving technical indicators paints a constructive picture from a technical standpoint.

DeFi and NFT Adoption Driving Demand

A key fundamental tailwind for Solana is the rapid adoption of decentralized finance (DeFi) and non-fungible token (NFT) applications on the network.

Solana has become one of the top layer-1 blockchain platforms in terms of DeFi and NFT project deployment. The total value locked in DeFi on Solana has surpassed $1.6 billion. Meanwhile, Solana's low transaction fees make it popular for NFT minting and trading.

As more developers build DeFi and NFT products on Solana, demand for the SOL token increases. The growth of the Solana ecosystem is a core bullish fundamental.

Outlook Remains Positive for 2023

Looking ahead, the outlook for Solana remains positive given its strong momentum and leadership in Web3 development. While the broader cryptocurrency market conditions remain challenging, Solana appears well-positioned as an industry leader.

Technically, if Solana can maintain its push above $22, a move to test the 200-day moving average around $35 looks achievable over the coming months.

Fundamentally, Solana is likely to continue gaining market share in DeFi and NFTs, while also expanding into new verticals like gaming and social media. Major ecosystem milestones could provide periodic boosts to price.

Of course, risks remain around regulatory clampdowns and competitors eating into Solana's market share. But overall, Solana looks poised to be one of the outperformers in crypto heading into 2023. A consolidate above $30 over the next quarter would signal that Solana is strengthening its position for next year.

Is Solana Undervalued Relative to Ethereum?

Despite Solana's impressive gains this year, the asset has seen its valuation decline relative to Ethereum. Is Solana currently undervalued compared to Ethereum?

There is a case that Solana merits a higher valuation when comparing the growth of its DeFi and NFT ecosystems against Ethereum. However, Ethereum maintains advantages around security, decentralization, developer mindshare and maturity.

Ultimately, Solana may continue playing catch up to Ethereum in terms of market capitalization over the long term if adoption continues growing exponentially. But in the near term, it appears fairly valued relative to Ethereum based on current fundamentals.

Will Regulatory Concerns Limit Upside for Solana?

As cryptocurrencies gain mainstream traction, regulatory scrutiny has intensified. There are concerns that future regulations, especially around securities laws, could restrict cryptocurrency adoption and dampen upside.

While regulatory uncertainty remains an overhang, Solana is better positioned than most cryptos to weather regulatory headwinds. Due to its blazing fast speeds and low costs, it is emerging as one of the most developer-friendly and institution-ready layer-1 blockchains.

Regulations will likely impact higher risk assets and non-compliant projects more than mainstream platforms like Solana. There may be some limitations, but Solana’s strong technical foundations should allow it to adapt and comply with most reasonable regulations.

Conclusion

In summary, Solana's bull run still looks intact based on strong technical and fundamental trends. Growing developer activity, booming DeFi and NFT adoption, and a swift network make Solana one of the most promising smart contract platforms in the space. While risks exist, SOL appears undervalued relative to Ethereum and Solana’s strong technology should help it comply with impending regulations. Expect Solana to continue outperforming the broader crypto market as we head into 2023.