Solana Hits $76B As It Becomes Fourth Largest Crypto By Market Cap
Solana (SOL) has eclipsed Cardano (ADA) and the top stablecoin Tether (USDT) in terms of market valuation to become the fourth-biggest virtual currency by market cap. At the time of publication, the overall worth of all SOL coins in distribution was little more than $76 billion, placing it just slightly behind the overall value of the Binance Coin (BNB), which was USD 109B, Ether (ETH), which was USD 540B, and Bitcoin (BTC), which was $1.17 trillion. Meanwhile, the market capitalizations of Tether and Cardano have been calculated to be $74.42B and $66.39B, correspondingly.
SOL’s $100M Fund Raises Its Expectations
Solana’s current valuation soared as its native cryptocurrency, SOL, hit a new high. As a result of a market-wide price increase that saw other prominent cryptos post comparable gains, SOL reached a new historical high of $262 on Nov. 7. Solana’s move into Web3 videogame creation via its venture financing arm further boosted SOL.
The company, Solana Ventures, revealed Friday that it will invest $100 million in in-game companies and technologies. Solana Ventures hopes to increase SOL acceptance by attracting computer and smartphone gaming programmers to construct on its blockchain network. Similar acceptance in 2021 drove the SOL price up about 17,000% YTD, from about $1.51 to $262.45.
The upswing began when investors viewed Solana as a real competitor to Ether, the main smart contract market beset by increased gas rates and limited bandwidth. For instance, Solana claims it can handle 50,000-60,000 operations per second for $0.00025. With an average trading fee of $4 to $21, Ethereum is 15-30 times faster.
According to Bloomberg, Solana is “the leading competitor” to Ethereum, Cardano, as well as other smart contract systems in terms of programmer engagement and enthusiasm. The lack of prioritizing among SOL operations and a paucity of validations resulted in an 18-hour service outage in September. The issue could lead to reversals or changed operations across the Solana ecosystem.
Price Adjustment Concerns For SOL
Despite its recent surge to an all-time peak, SOL faces a fall as a result of at least two negative indications. To begin, the SOL value has been creating an Ascending Wedge, a structural formation that normally leads to lower rates. Secondly, the currency has shown a negative contrast between its price surge and dropping trend (as verified by poorer peaks on its daily relative strength indicator).
A breach underneath the lower trend line of the wedge, combined with a surge in volume, might bring the SOL price as low as the height limit. That puts SOL’s negative target somewhere from $205 and $91.52, dependent on where the negative breakout occurs.
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