Solana attacks the ‘conventional’ order of cryptocurrencies, pushes past Ripple and achieves a new TVL-ATH.
Solana (SOL) rises to 6th place in the price index of digital currencies by market capitalization, overtaking Ripple (XRP). At the same time, SOL DeFiLama according to a new Total Value Locked (TVL) record of $ 13.53 billion. The cryptocurrency is also still sniffing the air and is once again scratching its all-time high of 213.47 US dollars, which was last reached on September 9th – current price: 209.29 US dollars. In the last 24 hours alone, SOL has increased by 10.5 percent, in the last month by around 30.9 percent. What are the reasons?
Solana: The price drivers
In order to find reasons for the still extremely positive developments in Solana, which are not based solely on price speculation mechanisms, one has to search a little. On the one hand, the dApp currency, like most other Altcoins, swam north in the wake of the crypto-leading currencies BTC and ETH. So says Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitButt Capital:
The upward movement of other alts like ETH after BTC’s all-time high is supporting Solana’s price.
But even while other cryptocurrencies such as BTC and ETH corrected slightly again, SOL continued to shoot up. Another possible factor behind this increase in value could be the Announcements for the IGNITION Hackathon. Allegedly over 500 projects from the four different areas of Gaming, NFT, DeFi and Web 3.0 have registered. Up to five million US dollars will be distributed to the winners. In addition, the community’s commitment is increasing day by day.
Attack on Cardano?
The digital currency SOL, known for its proof of history, is currently one of the fastest blockchains (over 50,000 TPS) in space. In addition, with the low transaction fees (0.00001 US dollars per transaction) and the integration of smart contracts, it offers the optimal conditions for decentralized applications (dApps). These properties have contributed to the fact that “the optimal conditions for decentralized applications” is not just a theoretical phrase – measured in terms of market capitalization, Solana is now the third largest dApp application after ETH and Cardano (ADA). Current developments give reason to believe that this order could change in the near future: At the time of writing, Cardano ($ 69,020,284,982) and Solana ($ 63,021,529,430) are no longer separated by $ 6 billion .
Solana: Is there a correction coming up?
Compared to ADA, SOL posted an explosive increase in value. While ADA “only” rose from $ 0.106272 to $ 2.16 in the past 12 months, the SOL price shot from just $ 1.79 to over $ 209. The next few weeks will show how healthy and sustainable such growth is. As the past has shown, many inflated courses have to correct their values in the wake of such sharp increases.
We saw that [die Kryptowährung] has gained momentum this month and has attracted many new buyers over the past few weeks, with the number of active token holders increasing significantly … as the [Relative Strength Index] of the token moves around the 55-60 mark, there are no indications that Sol is overbought and could be heading for a correction.
Spanos emphasizes that only when the Relative Strength Index (RSI) exceeds the 70 percent mark can one speak of a potential overbought in the short term. The RSI is a common method used by analysts to make statements about this variable. In doing so, it relates the upward and downward movements of the underlying asset over a certain period of time.