Solana surpasses Cardano and Tether to become the fourth largest cryptocurrency worth USD 76 billion


Solana (Sol) More than Cardano (Have) And the leading stablecoin Tether (USDT) became the fourth largest cryptocurrency by market capitalization.

As of press time, the total net asset value of SOL tokens in circulation is slightly more than 76 billion U.S. dollars, only lagging behind Binance Coin (Bitcoin) 109 billion U.S. dollars in Ether (Ethereum) 540 billion U.S. dollars, and Bitcoin’s (Bitcoin) 1.17 trillion US dollars.

The top ten cryptocurrencies by market capitalization as of 1330 on November 7th, UTC time. Source: Messari

At the same time, the market values ​​of Cardano and Tether are 66.39 billion U.S. dollars and 74.42 billion U.S. dollars, respectively.

The launch of the $100 million fund boosts SOL’s bullish outlook

The market value of Solana has soared because of its native token SOL, New highOn November 7, the price of SOL exceeded $262 for the first time in history. This was mainly due to the price increase in the entire market, and other top cryptocurrencies also experienced similar increases.

At the same time, SOL gained additional bullish clues from Solana’s entry into Web3 game development through its venture capital arm. The company is called Solana Ventures Announce On Friday, it, together with FTX and Lightspeed Venture Partners, will invest $100 million in game studios and technology.

By doing so, Solana Ventures aims to attract desktop and mobile video game developers to build their projects on its public blockchain, thereby increasing the adoption rate of SOL. A similar adoption boom in 2021 helped drive SOL price Year-to-date increase of nearly 17,500%-from 1.51 US dollars to 262.45 US dollars.

The Solana ecosystem in a nutshell. Source: Solanians Telegram Channel

As speculators begin to see Solana as one of the most serious challengers to the leading smart contract platform Ethereum, an upward trend has surfaced Struggling to cope with higher gasoline bills And network congestion.

For example, Solana Claim It can process 50,000-60,000 transactions per second (tps), and the average transaction fee is $0.00025. In contrast, Ethereum’s transaction volume is 15-30 tps, and its median transaction cost is between $4 and $21.

Comparison of smart contract platforms.Source: Solves

Paul Veradittakit, a partner at Pantera Capital, told Bloomberg that Solana is a “top competitor” to Ethereum, Cardano and other smart contract platforms in terms of “developer adoption and motivation”.

related: With the market value of SOL breaking through the $70B mark, Solana and Cardano compete for the top five

Nevertheless, Solana also showed signs of resource exhaustion, that is, the lack of priority between SOL transactions and the small number of validators lead to Up to 18 hours of network outage In September. If it is not repaired, it may increase the risk of reversal or change transactions in the Solana network.

SOL price correction risk

Despite the recent rebound to a record high, SOL is likely to be corrected due to at least two bearish indicators.

First of all, the SOL price has been formed Rising wedge, A technological model that usually leads to lower prices. Second, cryptocurrencies have also been confirming that there is a bearish divergence between their price increases and their momentum decline (as evidenced by the lower highs of their daily relative strength index).

The daily price chart of SOL/USD has a rising wedge and a divergence of price momentum. Source: TradingView

Breaking below the lower trend line of the wedge, if accompanied by an increase in trading volume, the SOL price may fall to the maximum height. This roughly sets the downside target for SOL at between $205 and $91.52, depending on the level at which the bearish breakout begins.

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