Solana Upgrade Sparks $120 Hopes Amid Capacity-Demand Warning
Solana's recent upgrade to its block compute limit has fueled hopes for a price increase to $120, but experts caution that capacity and demand are not the same thing. The upgrade raised the per-block capacity by 66% from 60 million compute units to 100 million, allowing more transactions to land in each block without slowing down the 400-millisecond slots.
The distinction between capacity and demand is crucial. While the upgrade adds network capacity, it does not create new buying demand, which is necessary for a price increase. Solana's token still trades at $74, far below its past highs, despite the network's impressive engineering efforts.
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