Ethereum-killer Solana hit a new all-time high at $219, flipping XRP in market cap
- Solana-specific projects in DeFi and DAOs have contributed to exploding on-chain activity in SOL.
- SOL hit a new all-time high, posting over 13,500% gains since the beginning of 2021.
- Total value locked in DeFi protocols on the SOL network has exceeded $13.5 billion.
Solana is now the sixth-largest cryptocurrency by market capitalization. The layer one blockchain protocol’s high throughput and low-cost transactions attract developers and users to the SOL ecosystem.
SOL on-chain activity explodes as the altcoin hits a new all-time high
Earlier today, SOL hit a new all-time high. The total value locked (the equivalent of market capitalization) of all DeFi projects on the Solana blockchain has hit $13.5 billion. The high throughput (0.4-second settlement) and cheap transactions are driving users to the SOL network.
Further, SOL has posted over 13,500% gains since the beginning of 2021. Proponents debate whether the altcoin is an Ethereum-killer or a complement to the altcoin, while SOL eyes a position in the top five cryptocurrencies.
Solana is popular among venture capitalists as one of the most significant crypto investments. The altcoin had emerged as a top choice among institutional investors three weeks before it hit a new all-time high.
Pseudonymous cryptocurrency analyst @Pentosh1 predicted that SOL is preparing for explosive price discovery based on both fundamentals and technical analysis setups. The launch of NFTs and new projects in the SOL ecosystem has fueled the spike in on-chain activity.
$sol now only 30% away from taking the #3 spot and Bronze
— Pentoshi Won’t Dm You. hates Dm’s. DM's are scams (@Pentosh1) October 26, 2021
How can they allow him to keep getting away with this https://t.co/DD18hgroEJ
Crypto analyst @SmartContracter predicted SOL price rally to the new all-time high. The analyst noted a minor high on the price chart overnight and expected a new all-time high today.
saw a minor ath on $SOL overnight but today we see the real all time high break.
— Bluntz (@SmartContracter) October 25, 2021
ltfs just gathering steam for the next push which should be the big one pic.twitter.com/SJPK0SNjep
Tim Enneking, managing director of Digital Capital Management, identified the key reasons for Solana’s price rally. Enneking said,
It’s a legitimate participant in the NFT market (as opposed to a ‘hype participant’ as every token tries to claim some sort of affiliation with NFT to goose its price).
Solana has provided what Ethereum promised users and developers for years. The Ethereum-killer works on a proof-of-stake mechanism, powering low cost and fast transactions with greater scalability.
Cryptocurrency analyst @CryptoSenorita observes that Solana’s current price trend is similar to Ethereum’s during its 2017 bull run. The analyst has set a target of $700 for the altcoin’s price in the current rally.
$SOL looks like $ETH back in 17 when it started that $400➡️$1400 rally!
— CryptoSeñorita® (@CryptoSenorita) October 24, 2021
That would be a $200➡️$700 rally for $SOL!! pic.twitter.com/UyHiVdCiDV
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
