January 21, 2022

Solana Is Vying For A Spot In The “top 5” With Cardano While SOL’s Market Capitalization Crosses USD 70 Billion

Solana’s fall rebound (SOL) continued on November 3 with its price and market capitalization hitting a new record.

SOL increased 7% in the last 24 hours to $ 236, bringing its market capitalization to more than $ 70 billion for the first time in history. When the token wobbled near its record highs, it flipped Cardano (THERE IS) briefly to become the world’s fifth most valuable cryptoasset.

Nowadays, SOL’s market capitalization was around $ 69.37 billion, just $ 500 below ADA’s $ 69.87 billion market valuation.

The top ten cryptocurrencies by market capitalization (as of 12:30 UTC, November 3). Source: Messari

Solana rebounds amid NFT craze

Solana’s battle for the top five cryptocurrency spot came on the heels of SOL’s renewed bullish force heading into the fourth and final quarter of 2021. For example, Solana’s native blockchain token grew by more than 65% since October 1. On the other hand, ADA’s returns in the same period turned out to be only 2.13%.

ADA underperformed primarily on “sell the news” sentiment. As Cointelegraph covered, Cardano’s token began to sink right after it launched its long-awaited smart contract functionality via the so-called Alonzo update on September 13.

Three-day ADA / USDT price chart. Source: TradingView

In the days leading up to the hard fork, ADA’s best year-to-date returns were around 1.630%. As of press time, they are approximately 1,050%. In contrast, SOL’s yields to date, as of press time, were above 12,700%.

Independent market analyst Pentoshi attributed the growing number of non-fungible token (NFT) projects in Solana as one of the main reasons behind its price boom, recalling a tweet from August 16 that accurately predicted an uptrend for the token.

$ Sol has overtaken $ Ada and has taken the number 3 spot

Balance has been restored in the world

The endless summer of #solana

Messari researcher Mayson Nystrom also he pointed NFT’s “formidable growth” in the Solana ecosystem, noting that the blockchain has processed $ 500 million in total NFT secondary sales volumes since April 2021. Excerpts:

“Whether or not Solana can manifest this initial energy in the long-term growth of NFTs has yet to be determined, but current signs present valid reasons to be optimistic about Solana’s burgeoning NFT ecosystem.”

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Solana versus Ethereum NFT statistics. Messari

Will SOL hit $ 275 later?

SOL’s latest rise to its all-time high also came as a breakout of its Bullish Flag structure, as shown in the chart below.

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SOL / USDT daily price chart with Bullish Flag setup. Source: TradingView

Bullish flags appear as price consolidates within a triangle-like structure after posting a strong bullish move, called the flagpole. Traders usually wait for the price to break above the upper trend line of the triangle before setting their profit target at a length equal to the height of the flagpole.

Solana’s flagpole height is approximate, $ 175. As a result, its breakout move from the Triangle resistance trend line (~ $ 158) causes SOL to grow another $ 175, thus setting its profit target. above $ 275.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Each investment and commercial movement involves a risk, you must do your own research when making a decision.

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Solana Is Vying For A Spot In The “top 5” With Cardano While SOL’s Market Capitalization Crosses USD 70 Billion