Dynamo DeFi has revealed some on-chain metrics and strategies that suggest that Solana’s price may be about to skyrocket. The YouTube video presenter is highly bullish on Solana, and in the video, he explained why Solana is currently an attractive investment in crypto.
Solana is ranked number 5 on CoinGecko with a market cap of around $4 billion, just below Binance Coin (BNB).
Solana’s Dominance Over Bitcoin and Ethereum
Solana’s dominance over Bitcoin and Ethereum is just over 3% and has not broken out yet. However, in terms of its price over Ethereum (ETH), Solana is at an all-time high, surpassing its previous high in 2021.
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The presenter revealed that Solana is outperforming the market, which is unusual for alternative layer 1s. Compared to other Ethereum competitors, Solana has consistently been gaining traction over the years.
Solana is currently the number 2 blockchain by Total Value Locked (TVL), although it is significantly below Ethereum. It is one of the few major blockchains growing in TVL and has been up by 10% in the past month.
There have been stablecoin inflows into Solana, with the metrics increasing by 8% in the past 7 days. This indicates growing trust and real money entering the ecosystem.
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Growth in Decentralized Exchanges and Validators
Solana has also had growth in decentralized exchanges (DEX), increasing its market share by 15x in 1 year. The blockchain also ranks high in terms of fees collected, which is an indication of strong user engagement. 4 out of the top 10 DEX applications by fees are on Solana.
Jupiter, a Solana-based decentralized exchange, ranks number one by liquidity for on-chain derivatives. Solana is also significant in derivative trading volume and ranks third, just behind dYdX and Hyper Liquid.
Solana has grown very large in terms of how decentralized the ecosystem is. It has more than 1500 validators. Although it is still younger and less decentralized compared to Bitcoin and Ethereum, Solana is the second largest blockchain by staking market cap next to Ethereum.
According to the analyst, all these point to the fact the Solana season is coming and the price will have major spikes in the near future.
A Viable Alternative to Ethereum
Solana is currently in its second cycle in terms of adoption and differentiation. It has outperformed many cryptocurrencies in adoption and is already becoming a viable alternative to Ethereum, especially for those looking for on-chain activities with low transaction fees.
The low fees have been a unique selling point for SOL, and it has made it significantly useful for launching and trading meme coins. The ecosystem is also showing signs of sustainable growth and positive liquidity and activities.
Solana (SOL) Price Prediction
The price of SOL has bounced off a major support and was able to close above the support at around $126. The price has since then increased by 20% in the last 3 days.
It is already breaking above key resistance at around $150 to $154. Closing above it is important for a price ascension in the short term.
The relative strength index on the daily chart is at 48. If the price closes above $150, it is likely to rally a little more before any major retracement. The RSI value also supports this possibility.
Breaking above the resistance at around $154 is also likely to make the price close above the 50-day and 100-day SMAs. This is expected to trigger a short-term rally.
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The post Rising On-chain Metrics Reveal ‘Solana Season’ Is Coming: SOL Price Analysis appeared first on CaptainAltcoin.
