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

189
SHARES
1.5k
VIEWS


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

At press time, the online price of whole SOL tokens in circulation was somewhat over $76 billion, falling solely behind Binance Coin’s (BNB) $109 billion, Ether’s (ETH) $540 billion, and Bitcoin’s (BTC) $1.17 trillion.

Related articles

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 prime cryptocurrencies ink related good points.

In the meantime, SOL obtained extra bullish cues from Solana’s foray into Web3 gaming improvement through 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 know-how sector.

In doing so, Solana Ventures goals to draw desktop and cellular online game builders to construct their initiatives atop its public blockchain, thereby elevating the prospect of upper SOL adoption. An analogous adoption increase 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 probably the most severe challengers to Ethereum, the main sensible contracts platform grappling with higher gas fees and community congestion points.

For example, Solana claims that it might course of 50,000-60,000 transactions per second (tps) for a mean transaction price of $0.00025. As compared, Ethereum transacts 15-30 tps, with its median transaction price ranging between $4 and $21.

Sensible contract platforms comparability. Supply: Solwealth

Paul Veradittakit, a companion at Pantera Capital, instructed Bloomberg, referred to as Solana “the highest competitors” to Ethereum, Cardano, and different sensible contract platforms, relating to “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 mounted, it might elevate 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 because of a minimum of two bearish indicators. 

First, the SOL value has been forming a Rising Wedge, a technical sample that sometimes leads to 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 each day relative power index).

SOL/USD each 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 threat 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 threat, it is best to conduct your individual analysis when making a call.