thecoinrepublic.com
- Solana outperformed and acquired the position of Cardano and Tether in terms of market cap
- Analysts note that Non-Fungible tokens are the main reasons behind SOL’s uptrend
- SOL price is expected to grow more near the level of $275
Solana has observed another cryptocurrency that is continuing to grow with some tremendous pace. On Wednesday, the price of SOL, native crypto token of Solana, showed some bullish performance. Analysts observed that the coin’s autumn rally drove its market capitalization to achieve a new all-time high. Moreover, on Wednesday, the price of SOL bullishly surged by more than 7% over the period of last 24-hours towards the price level of $236. Notably, as the token wobbled near new highs, it flipped ADA, the native crypto token to Cardano, to take its position in the world’s top five crypto assets in terms of market cap.
At press time, SOL is trading at the price level of $239, which is up by more than 21% over the past one week. Moreover, with the market cap of more than $72 billion, SOL is the fourth largest digital asset in terms of market capitalization.
What is driving the value of Solana?
Solana began to overtake the position of its competitors on the heels of its renewed upside strength heading into the fourth and the final quarter of this year. Since the beginning of last month, SOL crypto coins are up by more than 65%. According to an independent market analyst Pentoshi, the credit for the uptrend goes to the Non-Fungible Tokens (NFTs) project on the blockchain. Indeed, the analyst believed that NFTs are one of the main reasons behind the recent price boom. Hence, Pentoshi has accurately predicted such a bull run for SOL price.
On the other hand, Mayson Nystrom, one of the researchers at Messari also observed the growth of NFTs in the Solana blockchain ecosystem were formidable. Furthermore, the blockchain processed $500 million worth of total Non-fungible Token sales volume since April.
Mayson further stated that whether or not SOL can manifest such initial energy into the longer time frame NFT growth, that is yet to be determined. However, the current signs present valid reasons to be optimistic regarding the blockchain.
SOL has outperformed Cardano’s ADA
Where the SOL coins are soaring and analysts are found bullish, ADA’s returns over the same period are very less. Cardano has primarily outperformed on “sell-the-news” sentiment. Experts in the cryptosphere have observed that ADA started plunging right after it’s one of the most awaited smart contracts functionality was introduced. Where ADA witnessed its best year-to-date gains near 1,630%, SOL has witnessed YTD gains of more than 12,700%.
Will SOL continue its bullish cycle?
Solana token’s latest bullish cycle to its record high has come as its breakout of its Bullish Pennant structure. Notably, the bullish pennants appear as the price of SOL consolidates inside a triangle-like structure after logging a robust movement, that is dubbed as Flagpole. Hence, the investors are waiting for the price break above the Triangle’s upper trendline before their profit target at a length equal to the Flagpole’s height. The breakout move of SOL from the Triangle’s resistance trendline could help the token grow to more than $275.