The Solana network has recently significantly surpassed the Ethereum network in web3 activity, driven by the growth of the meme coin space.
Highlights
- Solana price recently broke the resistance near $160, but it needs to break the next level near $190 to maintain the bullish momentum.
- Solana’s TVL has grown to its highest level in years due to growing demand for meme coins.
Over the past seven months, Solana has
brush
$166.1
24-hour volatility:
0.5%
Market capitalization:
$78.02B
Vol. 24 hours:
$411B
The price established a strong support level above $128, which formed the basis for a sustained bullish breakout. The large-cap altcoin, which has a fully diluted value of about $98 billion and an average daily trading volume of about $4.7 billion, has surged more than 8% over the past two weeks, trading above the crucial resistance level of around $160 for the first time since then. Late July.
Although Solana’s price has not completely broken out, the chances of a bullish breakout toward all-time highs have increased significantly. From a technical analysis perspective, Solana price would need to consistently close above its July 2024 high of around $190 for it to rebound towards $250 next week.
Nonetheless, Solana’s final call for a bullish breakout will be largely determined by Bitcoin.
BTC
$67165
24-hour volatility:
0.0%
Market capitalization:
$1.33T
Vol. 24 hours:
$32.90B
And Ethereum
ETH
$2,614
24-hour volatility:
0.7%
Market capitalization:
$314.46B
Vol. 24 hours:
$14.90B
Price action in the short term. With the altcoin market showing a positive correlation with Bitcoin and, in return, a positive correlation with gold, a bullish breakout is likely to occur in the future.
Essentially, the cryptocurrency industry is waiting for another interest rate cut from the Federal Reserve during the upcoming 2024 US general elections.
Solana threatens Ethereum Web3 dominance
The Solana network has grown into a vibrant Web3 ecosystem over the past year after defying the impact of the collapse of FTX and Alameda Research. According to the latest market data, the total value of the Solana network is approximately $6.41 billion, the highest since January 2022.
Last year, trust in the Solana ecosystem increased significantly, and the stablecoin market capitalization increased to over $3.5 billion. Surprisingly, the number of active addresses on the Solana network in the last 24 hours was approximately 7.62 million, while the total daily active addresses on the Ethereum network were 397,000.
Solana’s notable surge in on-chain activity is largely due to Solana’s meme coin ecosystem. The ecosystem has expanded to a market capitalization of over $11 billion and an average daily trading volume of approximately $2.5 billion.
As a result, Solana’s DEX trading volume exceeded $2 billion in daily volume for three consecutive days, surpassing Ethereum and all other top-tier chains. Meanwhile, Solana’s token issuer, Pump.fun, facilitated the release of over 2.5 million meme coins, with lifetime collection fees reaching nearly 1 million SOL.
On the other hand, the Ethereum network is still suffering from low demand from institutional investors, as evidenced by the notable cash outflow from the US spot Ether ETF.
Despite having over a dozen scaling solutions, Ethereum’s dominance in the Web3 space is greatly threatened by other emerging chains such as Solana and Toncoin.
ton
$5.20
24-hour volatility:
0.2%
Market capitalization:
$13.20B
Vol. 24 hours:
$263.17M
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disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to convey accurate and timely information, but should not be taken as financial or investment advice. Market conditions can change rapidly, so please verify the information yourself and consult with an expert before making a decision based on the information.
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