Solana (SOL) surpassed Cardano (ADA) and main stablecoin Tether (USDT) to change into the fourth-largest cryptocurrency by market capitalization.
At press time, the web value of complete SOL tokens in circulation was a bit over $76 billion, falling solely behind Binance Coin’s (BNB) $109 billion, Ether’s (ETH) $540 billion and Bitcoin’s (BTC) $1.17 trillion.
High ten cryptocurrencies by market cap as of 13:30 UTC, Nov. 7. Supply: Messari
In the meantime, ADA’s and Tether’s market caps got here out to be $66.39 billion and $74.42 billion, respectively.
$100-million fund launch boosts SOL’s bullish outlook
Solana’s market capitalization surged as its native token, SOL, rose to one more report excessive. On Nov. 7, SOL’s worth crossed above $262 for the primary time in historical past, primarily owing to a market-wide worth rally that noticed different prime cryptocurrencies ink related features.
In the meantime, SOL obtained extra bullish cues from Solana’s foray into Net 3.0 gaming growth by way of its enterprise capital arm. Dubbed Solana Ventures, the agency introduced Friday that it, alongside FTX and Lightspeed Enterprise Companions, would make investments $100 million into the sport studios and know-how sector.
In doing so, Solana Ventures goals to draw desktop and cell online game builders to construct their initiatives atop its public blockchain, thereby elevating the prospect of upper SOL adoption. An identical adoption increase in 2021 helped ship SOL’s worth up by virtually 17,500% year-to-date — from $1.51 to $262.45.
Solana ecosystem in a nutshell. Supply: Solanians Telegram Channel
The uptrend surfaced as speculators began treating Solana as one of the severe challengers to Ethereum, the main good contracts platform grappling with increased gasoline charges and community congestion points.
As an example, Solana claims that it may course of 50,000–60,000 transactions per second (TPS) for a median transaction price of $0.00025. Compared, Ethereum transacts 15–30 TPS, with its median transaction price ranging between $4 and $21.
Good contract platforms comparability. Supply: Solwealth
Paul Veradittakit, a accomplice at Pantera Capital, instructed Bloomberg that Solana is “the highest competitors” to Ethereum, Cardano and different good contract platforms, concerning “developer adoption and momentum.”
Associated: Solana battles Cardano for the top-five spot as SOL market cap crosses $70B mark
Nonetheless, Solana additionally exhibited indicators of useful resource exhaustion — i.e., a scarcity of prioritization amongst SOL transactions and a decrease variety of validators that led to an 18-hour-long community outage in September. If not fastened, it may increase the dangers of reversed or altered transactions throughout the Solana community.
Correction dangers for SOL’s worth
Regardless of its newest rally to an all-time excessive, SOL dangers present process a correction resulting from not less than two bearish indicators.
First, SOL’s worth has been forming a rising wedge, a technical sample that usually ends in decrease costs. And second, the cryptocurrency has additionally been confirming a bearish divergence between its rising worth and declining momentum (as confirmed by decrease highs on its every day relative power index).
SOL/USD every day worth chart that includes rising wedge and price-momentum divergence. Supply: TradingView
A break under the wedge’s decrease trendline, if accompanied by a rise in quantity, would threat sending SOL’s worth decrease by as a lot as the utmost top. That roughly places SOL’s draw back goal to ranges between $205 and $91.52, relying on the extent at which the bearish breakout begins.
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