Altcoins
Solana Price Prediction: The Remarkable Rise and Fall of SOL
Solana price continued its sell-off as concerns about its exposure to FTX continued. Other tokens associated with the company like Aptos and Near Protocol continued their sell-off as well. SOL was trading at $9.43 on Thursday, which was significantly lower than its November high of $40. At its peak, Solana was trading at $260.
FTX exposure and ecosystem risks
Solana is one of the biggest blockchain networks in the world. It is an Ethereum rival that is known for its faster speeds and low transaction costs. The network has been used to build some of the best-known Web3 projects like Brave Browser, Step’N, and Solend.
Solana is one of the biggest players in the NFT industry. Data published by CryptoSlam shows that the network handled $70 million worth of NFTs in November even as the crypto sell-off continued. It handled NFTs worth about $64 million in December. Still, this is a significantly lower figure than its all-time high of $303 million.
Solana is also well-known in the DeFi industry where it powers platforms like Marinade Finance, Orca, Credix, and Raydium. At its peak, Solana had over $10 billion in total value locked (TVL). Today, this amount has plunged to just $250 million because of the collapse of Serum.
Serum was the biggest DeFi platform in its ecosystem. It collapsed after revelations that its public key was held by FTX, the exchange that collapsed in November. As a result, most people with assets in Serum sold them.
Solana price has also crashed after on-chain data showed that many holders have started to sell the coin. This is important because FTX and Alameda Research were among the biggest holder of the coin. In a report on Thursday, it was revealed that Alameda had sold millions of Ether tokens in for Bitcoin.
Solana price prediction
The daily chart shows that SOL price has been in a strong bearish trend in the past few months. This sell-off accelerated after the collapse of FTX and Alameda Research. Consequently, the coin remains below all moving averages while oscillators continued falling.
Therefore, the outlook of Solana price is bearish, with the next key level to watch being at $5. A move above the resistance point at $20 will invalidate the bearish view.
Solana price performance in recent times has been remarkable, surpassing Ripple and Binance Coin to become the fourth-largest cryptocurrency by market cap. The SOL price breached the critical level of $100 for the first time since April 2022 over the weekend to imbue optimism among investors. However, the altcoin has corrected by 7%, suggesting that the market is overheated. At the time of writing, the ‘Ethereum killer’ was trading slightly lower at $111.60.
SOL Outlook
Solana price has made a significant recovery over the past few weeks, climbing above the psychological level of $100. The altcoin has been one of the best-performing assets this year, extending its year-to-date gains to more than 1,025%, with more gains recorded in the past month alone. However, even with such growth, analysts have noted that Solana has a bleak chance of topping its ATH of $260.
The reason behind this is the increase in supply relative to its value. In November 2021, when the Solana price hit its all-time high of $260, its total market capitalization was around $78 billion. Despite the value of the crypto asset being less than half of what it was at the top, its market cap is currently hovering near $50 billion.
This has been brought about by the increase in the Solana supply by more than 100 million SOL over the past two years. According to some analysts, for the altcoin to retest $260, its…
Solana price has noted significant gains over the past few weeks, climbing to its highest level since April 2022. The ‘Ethereum Killer’ almost topped the crucial level of $100 on Friday, before pulling back slightly. The asset’s recent surge has catapulted Solana’s total market cap to $39.6 billion, ranking 5th after and above BNB and XRP, respectively. Solana has jumped by more than 22% in the past week and more than 80% in the month to date. At the time of writing, SOL price was trading 0.90% lower at $93.10.
Catalysts Behind SOL’s Rally
Solana price has been on a strong bull run over the past few days, rocketing to its highest level in 20 months as the network benefits from the substantial activity and strong interest in memecoins. The SOL token, the native digital asset of the high-performance blockchain platform Solana, has shown some serious strength over the past few weeks, outperforming all the altcoins in the market.
The recent surge in the Solana price has been linked to heightened on-chain activities on the Solana blockchain. Notably, the ongoing hype for the blockchain’s speedy transactions, cheap fees, and a lottery of meme coin issuances has buoyed SOL’s on-chain activity. Metrics have revealed that Solana has been the strongest draw among on-chain traders, with trading volumes and network fees outperforming Ethereum- the largest altcoin by market cap.
Cited figures provided by DeFi aggregator DeFiLlama…
Solana price has jumped more than 8% over the past week, breaching the important level of $60. At the time of writing, Solana was trading 3% higher at $61.07. The asset’s total market cap has climbed to $25.9 billion over the past week, ranking it the 6th largest cryptocurrency after XRP. The total volume of SOL traded over the last day has declined by 8%.
SOL’s Bullish Cues
Solana’s price has been among the best-performing cryptocurrencies this year amid continuous growth. The “Ethereum killer” has consistently impressed investors throughout the year on the back of a resurgence in bullishness, which saw SOL’s price climb more than 513% in the year to date. Institutional investors have also shared the bullish sentiment, making Solana their most preferred altcoin.
In the week ending November 24, Solana recorded inflows worth nearly $3.5 million, significantly more than the other altcoins’ inflows combined. The asset’s monthly inflows were higher at $40.2 million, lower than Ethereum’s $99.6 million inflows in the same period. Other altcoins, including Litecoin and Ethereum, noted significant outflows, making Solana nearly half of the home for DeFi. This implies that when it comes to institutions, Solana is currently the best-performing altcoin with the potential of a long-term rally much higher than other digital assets.
Notably, the Solana DeFi ecosystem accomplished a significant milestone earlier this week. Its Total Value Locked (TVL) hit a new yearly peak of over $655 million,…
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