Friday, December 9, 2022

Solana surpasses Cardano, Tether to become fourth-biggest crypto worth $76 billion

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Solana (SOL) surpassed Cardano (ADA) and main stablecoin Tether (USDT) to become the fourth-largest cryptocurrency by market capitalization.

At press time, the web worth of whole 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 1330 UTC, Nov. 7. Supply: Messari

In the meantime, Cardano and Tether’s market cap got here out to be $66.39 billion and $74.42 billion, respectively.

$100M fund launch boosts SOL’s bullish outlook

Solana’s market capitalization surged as its native token, SOL, rose to yet another record high. On Nov. 7, the SOL value crossed above $262 for the primary time in historical past, primarily owing to a market-wide value rally that noticed different high cryptocurrencies ink comparable positive factors.

In the meantime, SOL obtained extra bullish cues from Solana’s foray into Web3 gaming growth by way of its enterprise capital arm. Dubbed Solana Ventures, the agency announced Friday that it, alongside FTX and Lightspeed Enterprise Companions, would make investments $100 million into the sport studios and expertise sector.

In doing so, Solana Ventures goals to appeal to desktop and cellular online game builders to construct their initiatives atop its public blockchain, thereby elevating the prospect of upper SOL adoption. An identical adoption growth in 2021 helped ship the SOL price up by nearly 17,500% YTD — 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 vital critical challengers to Ethereum, the main sensible contracts platform grappling with higher gas fees 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 charge of $0.00025. Compared, Ethereum transacts 15-30 tps, with its median transaction value ranging between $4 and $21.

Sensible contract platforms comparability. Supply: Solwealth

Paul Veradittakit, a associate at Pantera Capital, advised Bloomberg, referred to as Solana “the highest competitors” to Ethereum, Cardano, and different sensible 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., an absence of prioritization amongst SOL transactions and a decrease variety of validators that led to an eighteen-hour long network outage in September. If not fastened, it may increase the dangers of reversed or altered transactions throughout the Solana community.

Correction dangers for SOL value

Regardless of its newest rally to an all-time excessive, SOL dangers present process a correction due to at the very least two bearish indicators. 

First, the SOL value 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 value and declining momentum (as confirmed by decrease highs on its every day relative power index).

SOL/USD every day value chart that includes rising wedge and price-momentum divergence. Supply: TradingView

A break beneath the Wedge’s decrease trendline, if accompanied by a rise in quantity, would danger sending the SOL value decrease by as a lot as the utmost peak. 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. 

The views and opinions expressed listed here are solely these of the creator and don’t essentially mirror the views of Cointelegraph.com. Each funding and buying and selling transfer entails danger, you must conduct your individual analysis when making a call.