It’s quite surprising, but for a short while, Solana (SOL) managed to move ahead of Tether (USDT) to secure the fourth position on the list of largest cryptocurrencies based on market capitalization.
The recent increase was fueled by an exceptional rise in the value of SOL, peaking at $295 during the most recent trading day.
Despite SOL now ranking fifth with a market capitalization of $126 billion after a recent pullback, the intriguing query persists: Might Solana potentially outcompete Ethereum [ETH] in the future?
Memecoin mania fuels Solana
The sudden shift of USDT on Solana was driven primarily by an increase in network activity, which can be traced back to the introduction of the authentic TRUMP meme coin.
The launch of the meme coin on the Solana platform has significantly boosted its market liquidity, increased transaction volumes, and attracted a great deal of attention from potential investors.
As a crypto investor, I’ve noticed an intriguing trend: the token seems to be garnering significant attention on social media platforms. This surge in interest appears to be driving up adoption and transaction volumes on the Solana blockchain.
Significantly, we saw a substantial increase in daily transactions up to 850,000, and trading volume skyrocketed from $9 billion to an impressive $20 billion within just two days. To add to this, Solana’s Total Value Locked (TVL) hit an all-time high of $11.3 billion.
Technical indicators signal strong momentum
As a researcher studying the cryptocurrency market, I’ve observed that Solana has shown significant technical resilience. Currently, its 50-day moving average hovers around 210.10, comfortably surpassing the 200-day moving average which stands at 175.90. This gap between these two key indicators suggests a positive trend for Solana’s price action.
The high RSI value of 69.44 signifies a powerful surge in momentum, with potential for even greater gains ahead. The impressive trading volume of about 1.73 million SOL during this rally suggests a significant level of market involvement.
The RSI reading at 69.44 shows strong positive momentum and hints at more growth to come. The high trading volume of approximately 1.73 million SOL during the rally indicates a lot of market activity.
Ethereum’s market position remains formidable
Currently, Ethereum is being traded at approximately $3,393.63. This price point is reinforced by its 50-day moving average of $3,536.84. With a market capitalization surpassing $411.3 billion, Ethereum holds a substantial advantage in value compared to Solana’s current market cap of around $126 billion.
For Solana (SOL) to potentially overtake Ethereum’s position, it would require a price increase to roughly $850, given the present level of supply remains steady.
Can Solana flip Ethereum?
Even though Solana currently ranks fifth with a market capitalization of approximately $126 billion, its growth path suggests intriguing opportunities.
The difference in value between SOL and ETH currently hovers around $285 billion, implying a substantial opportunity for growth as long as their network activities continue to thrive.
Yet, the continued expansion relies heavily on genuine adoption that extends beyond mere speculation in meme-based cryptocurrencies.
As a crypto investor, I find myself eagerly anticipating Solana’s (SOL) next steps. The goal now is to keep the price consistently above $250, while also focusing on developing robust network usage that can be sustained over time.
Although the TRUMP token has sparked significant expansion, achieving lasting triumph calls for the enhancement of a more extensive network and maintaining technical strength over time.
As a researcher observing the current cryptocurrency landscape, I’m struck by the significant stride Solana has made in reaching its latest market cap milestone. This achievement underscores Solana’s potential to compete with established players. However, surpassing Ethereum, a formidable competitor, is not an easy feat that can be accomplished solely through temporary excitement generated by memecoins. It requires sustained effort and innovative solutions that go beyond momentary trends.
Over time, a network’s capacity to draw significant development efforts and sustain them may shape its standing within the cryptocurrency ecosystem.
Read More
- GBP EUR PREDICTION
- HBAR PREDICTION. HBAR cryptocurrency
- SEI PREDICTION. SEI cryptocurrency
- Rumoured The Elder Scrolls 4: Oblivion Remake Dev is Working on an “Unannounced Unreal Engine 5 Remake”
- CNY RUB PREDICTION
- ICP PREDICTION. ICP cryptocurrency
- INJ PREDICTION. INJ cryptocurrency
- Gaming Colossus Tencent Added to US Blacklist, Accused of Ties to Chinese Military
- The DCU Is Better Off Without More Batman Movies for Awhile
- Wise Guy: David Chase Revisits The Sopranos in HBO Documentary Trailer
2025-01-20 14:16