SOL’s “New ADA” status and what it really means

Solana (SOL) caught everyone’s attention earlier this year and during the August bull market, unexpectedly breaking more records than any other coin in less than 3 months. The evidence is that SOL continued to surge sharply after the May incident and hit a new ATH. More importantly, SOL has entered the top 10 cryptocurrencies in the market.

However, all of these accomplishments cannot be compared to what SOL achieved yesterday.

SOL becomes fourth largest crypto

After SOL was up 10.1% yesterday, SOL has finally achieved what veterans like LTC and DOGE couldn’t even at the height of its popularity. It ousted ADA and USDT to become one of the top 4 cryptocurrencies in the market.

Surprisingly, the case-insensitive difference to the two is not just a few million dollars at the time of this writing. Instead, SOL is at $ 72.98 billion, USDT is at $ 72.84 billion, and Cardano is behind at $ 64 billion.

Top 7 cryptocurrencies | Source: Coinecko

Plus, the past three months have really changed the face of this crypto market. Notably, thanks to NFT fever, SOL shot up 945.66% in just 3 months.

SOL price promotion | Source: TradingView

However, SOL crashed ADA not only because it was in good shape, but also because ADA was slowly weakening. In fact, poor performance overtakes many aspects of ADA.

Over 550,000 addresses left Cardano in just one week. Even the number of transactions at the same time has dropped to four digits.

First, ADA does not follow broader market signals. After failing to break the USD 2.28 resistance, the previous support at USD 2.07 was turned into resistance.

ADA price promotion | Source: TradingView

Additionally, the correlation with Bitcoin has also dropped to -0.61, the worst number since ADA was born.

Correlation of ADA with Bitcoin | Source: Intotheblock

But can SOL maintain this upward momentum?

In terms of volatility, at the time of writing, it looks like SOL is at an annual low (YTD). In addition, the strong trading volume shows that the momentum is being led by investors. So if investors slow down, the rally could also cool down and push altcoin prices down accordingly.

Volatility of SOL | Source: Messari

In other words, if market sentiment is to be believed, SOL could just be the “new ADA”. Nothing special with regard to the relevant market position.

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Minh Anh

According to AMBCrypto

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