SOL, currently ranked fourth by market capitalization, set a new ATH of $ 260 on November. In fact, for many people, it doesn’t look like SOL is going to stop anytime soon. Since last year, the asset has achieved an ROI of more than 11,216% for HODLer.
SOL price table | Source: Tradingview
After SOL took 4th place from ADA, there was speculation that 3rd place from BNB was in jeopardy and SOL might eventually take it over. But what contributed to this surge and what will SOL’s trajectory be?
No more fear of FUD
SOL’s trajectory so far has been epic. In fact, this altcoin is up 945.66% in just 3 months. While the NFT hype is the main driver, Solana’s utility and growth in the DeFi space set the tone for optimism.
Just last week, SOL’s Total Locked-in Value (TVL) spiked, hitting a new ATH of $ 14.5 billion. In particular, the decentralized exchanges continued to grow steadily at 7.4 billion US dollars, while the TVL of the sector also rose.
At the same time, the TVL of loans soared to $ 1.77 billion, an increase of 74.25%. Overall, this seems like a good sign for this sector on Solana in the short term.
The source: Coin98 analysis
However, the path to SOL fourth place was not that easy. In doing so, Solana ran into many difficulties and thought she was going to fail. Fortunately, SOL does not appear to be affected by such FUDs.
More recently, Cyber ​​Capital’s CEO Justin Bons has accused the network of sharing fraudulent metrics about SOL’s circulating offering. This FUD not only did not weaken the rally, but even reached the ATH shortly after the statements.
Likewise, the failure of the Solana network in September made many fear that it would drive prices down, but in reality it only caused some short-term instability. Simply put, Solana can stay strong against FUDs and a lot of social media puzzles.
Reasons for the price increase
Solana has low volatility and offers its owners a constant ROI in both the long and short term. The SOL volatility is 0.98, near its annual low (YTD). In addition, assets have a relatively low level of risk, with a high Sharpe ratio indicating this.
The source: Messari
Solana also claims to be a cheaper and scalable Ethereum alternative. For example, the Ethereum network can only process around 12-14 transactions per second (TPS). In contrast, Solana hits 50,000 TPS, making it one of the fastest blockchains on the market.
In addition, developments like the sale of the NFT Tungsten Cube on Solana, which raised $ 100,000 last month, continue to add value to the asset and the blockchain. Additionally, Phantom, Solana’s native crypto wallet, has just topped 1 million active users thanks to the popularity of NFT and the bull run that resulted in the asset becoming one of only 4 monetary assets.
However, while SOL’s future growth looks promising, market entry will be difficult as the altcoin hovers near ATH.
However, a short term correction can create a good buying opportunity and an effective trading strategy would be support / resistance trading. It should be noted that under all circumstances, your own research is the best way to go.
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
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Has SOL got out of the nightmare called FUD?
SOL, currently ranked fourth by market capitalization, set a new ATH of $ 260 on November. In fact, for many people, it doesn’t look like SOL is going to stop anytime soon. Since last year, the asset has achieved an ROI of more than 11,216% for HODLer.
SOL price table | Source: Tradingview
After SOL took 4th place from ADA, there was speculation that 3rd place from BNB was in jeopardy and SOL might eventually take it over. But what contributed to this surge and what will SOL’s trajectory be?
No more fear of FUD
SOL’s trajectory so far has been epic. In fact, this altcoin is up 945.66% in just 3 months. While the NFT hype is the main driver, Solana’s utility and growth in the DeFi space set the tone for optimism.
Just last week, SOL’s Total Locked-in Value (TVL) spiked, hitting a new ATH of $ 14.5 billion. In particular, the decentralized exchanges continued to grow steadily at 7.4 billion US dollars, while the TVL of the sector also rose.
At the same time, the TVL of loans soared to $ 1.77 billion, an increase of 74.25%. Overall, this seems like a good sign for this sector on Solana in the short term.
The source: Coin98 analysis
However, the path to SOL fourth place was not that easy. In doing so, Solana ran into many difficulties and thought she was going to fail. Fortunately, SOL does not appear to be affected by such FUDs.
More recently, Cyber ​​Capital’s CEO Justin Bons has accused the network of sharing fraudulent metrics about SOL’s circulating offering. This FUD not only did not weaken the rally, but even reached the ATH shortly after the statements.
Likewise, the failure of the Solana network in September made many fear that it would drive prices down, but in reality it only caused some short-term instability. Simply put, Solana can stay strong against FUDs and a lot of social media puzzles.
Reasons for the price increase
Solana has low volatility and offers its owners a constant ROI in both the long and short term. The SOL volatility is 0.98, near its annual low (YTD). In addition, assets have a relatively low level of risk, with a high Sharpe ratio indicating this.
The source: Messari
Solana also claims to be a cheaper and scalable Ethereum alternative. For example, the Ethereum network can only process around 12-14 transactions per second (TPS). In contrast, Solana hits 50,000 TPS, making it one of the fastest blockchains on the market.
In addition, developments like the sale of the NFT Tungsten Cube on Solana, which raised $ 100,000 last month, continue to add value to the asset and the blockchain. Additionally, Phantom, Solana’s native crypto wallet, has just topped 1 million active users thanks to the popularity of NFT and the bull run that resulted in the asset becoming one of only 4 monetary assets.
However, while SOL’s future growth looks promising, market entry will be difficult as the altcoin hovers near ATH.
However, a short term correction can create a good buying opportunity and an effective trading strategy would be support / resistance trading. It should be noted that under all circumstances, your own research is the best way to go.
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
At home at home
According to AMBCrypto
Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page
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