In late December, Solana (CRYPTO: SOL) broke through the $100 mark for the first time in 18 months. At that point, the cryptocurrency was up nearly 10-fold for the year and seemingly out of nowhere had become one of the best-performing cryptocurrencies in the world.

But the new year has been a completely different story. While Solana is still up a staggering 500% during the past 12 months, it's gone nowhere since the start of 2024 and at one point was down as much as 20%. Is this just a case of profit-taking by investors who won big on Solana in 2023, or has something fundamentally changed?

On the positive side, Solana's underlying blockchain fundamentals continue to show signs of improvement. The key here is to focus on "on-chain" activity, which tells you what's actually happening on the blockchain itself. The more activity, the better.

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Source Fool.com