Solana Dethrones DOGE, ADA, as SOL Price Nears Key Hurdle

Solana takes charge as the top gainer among large global market cap altcoins.

Solana crowned on the throne.
Created by Kornelija Poderskytė from DailyCoin
  • SOL inks 24.7% gains in a week amid a DeFi project upsurge on the L1 chain.
  • The Layer-1 blockchain hits a yearly high of $339M in total value locked (TVL).
  • SOL remains in a strong position judging by the Fibonacci retracement pattern.

Once crowned the quickest Layer-1 blockchain, Solana (SOL) received a substantial bump along with most altcoins after the inaugural Ethereum Futures ETF was announced to the public. 

Despite reaching a new monthly high of $24.44, $SOL struggles to establish a foothold in the price range and currently faces a slight market correction. At press time, Solana (SOL) trades at $24.08 with a 1% downturn in the last 24 hours, according to CoinGecko.

Unseating Dogecoin (DOGE) and rival altcoin Cardano (ADA) in the crypto charts by global market capitalization, SOL now holds a $9.93 billion market cap, nearing the $10bn threshold for the first time since August 15th, 2023.

Institutional Darling Solana Hits New TVL High

Whipping up 24.7% gains in the last seven days and a 13.82% bull run on Monday, Solana hovers above the $24 barrier with a fresh $5 million influx by institutional investors. Indeed, the latest CoinShares report labels Solana the institutional investor darling with 27 straight weeks of inflows. To illustrate, institutions bought $5M worth of SOL in the last seven days.

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Despite the low overall trading activity in the alternative crypto markets, Solana’s Layer-1 blockchain recently hit a yearly high of $339.37 million. This marks a sufficient recovery from the FTX crash in November 2022. Solana’s VL has grown 38% since the beginning of 2023 and continues to challenge rival Ethereum (ETH) PoS with fast and cheap transactions.

The strong price foundation is evident in the technical charts, as the crypto behavior sequence Fibonacci marked the retracement level to be between $18.75 low and $24.47 high. 

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While $SOL failed to keep up with the $24.50 resistance so far, the altcoin has also shown resilience with a 1% market correction. If the barrier holds, its next key hurdle sits at $28.80, resembling mid-July’s run.

On The Flipside

  • Solana’s rising total value locked (TVL) stands out in the current stagnation phase in the altcoin markets, closely competing with the rising projects on Coinbase’s Base L1.
  • However, Solana’s TVL falls sharply behind Shiba Inu’s recently launched Shibarium L2, which encompasses a $616M TVL a month since the public launch.

Why This Matters

Solana’s blockchain and products like Solana Saga phones have contributed to retail crypto adoption, proving its worth to institutional investors.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Tadas Klimasevskis

Tadas Klimaševskis is a Lithuanian journalist at DailyCoin, specializing in covering the lighter side of the crypto industry such as memecoins and pop culture in the metaverse. He has experience as a music artist, English language teacher, and freelance writer, and uses his creative writing skills to summarize valuable information in his work. He is also a strong believer in the potential of blockchain and spends his free time listening to music, traveling, and watching basketball games.