Solana overtakes Cardano and USDT to occupy the top 4 after market capitalization surpasses $ 70 billion
The last 24-hour rally saw Solana rise 7% to $ 236, increasing its market cap to over $ 70 billion for the first time in history and outperforming Cardano (ADA) and USDT to make it into the top 4 of the largest cryptocurrencies in the world.
Top 10 cryptocurrencies by market capitalization | Source: Coinmarketcap
Solana explodes in NFT fever
Solana‘s battle for the top four in the electricity sector comes after SOL’s new strength enters the fourth quarter, the final quarter of 2021. Compared to ADA, which has only grown by 2.13% since October 1st, SOL increased by more than 65% in the same period.
ADA’s underperformance is largely based on a “semi-truth” mentality. It began to tumble shortly after the network implemented the much-anticipated smart contract functionality through the Alonzo upgrade on September 13th.
ADA / USDT. 1 day price chart | Source: TradingView
In the days leading up to the hard fork, ADA’s year-to-date return was around 1,630%, but only 1,050% at the time of going to press. Meanwhile, SOL’s YTD profit is currently over 12,700%.
Independent market analyst Pentoshi cited the growing number of NFT projects on Solana as one of the main reasons behind the price boom, recalling an August tweet. suspect exactly one SOL bull run.
“SOL overtook ADA and took 3rd place. The equilibrium is restored. Endless SOL summer ”.
Messari researcher Mayson Nystrom also noted “significant growth” of NFTs in the Solana ecosystem, noting that the Solana blockchain has processed a total of $ 500 million in secondary NFT sales since April 2021.
“Whether Solana can convert this early energy into long-term NFT growth remains to be determined, but the current signs suggest good reason to be optimistic about Solana’s growing NFT ecosystem.”
Solana’s NFT vs. Ethereum | Messari
SOL’s next target is $ 275?
SOL’s breakout to this record high was also a breakout from the bull pennant structure, as shown in the graph below.
The SOL / USDT daily price chart establishes a bull flag pattern | Source: TradingView
Bull flags appear when price consolidates within a triangle-like structure after a sharp upward move known as the flagpole. Traders typically wait for price to break above the top trendline of the triangle before setting their profit targets to a length that is equal to the height of the flagpole.
The height of the SOL flagpole is $ 175. Breaking the triangle’s resistance trendline ($ 158) will bring SOL an additional $ 175, setting a profit target above $ 275.
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According to Cointelegraph