Solana’s ‘new Cardano’ status and what the latest flippening means
Solana grabbed everyone’s attention earlier this year during the August bull market. Since then, it has been the talk of the town. Unexpectedly, in less than three months, it has made more records than any other coin. In a bullish narrative, it recovered from the May crash, hit a new all-time high, and most importantly, made it into the market’s top-10 cryptocurrencies.
However, all of Solana’s accomplishments fall short of the one it achieved yesterday.
The new #4
After hiking by 10.1% yesterday, Solana finally achieved what veteran players like Litecoin and Dogecoin, at their peak of popularity, failed to do. It flipped Cardano and Tether to become one of the market’s top 4 cryptos.
Surprisingly, at press time, the difference between the two was not by a margin of a few million dollars. Instead, Solana was at $73.1 billion, Tether at $71.4 billion, and Cardano way behind at $68 billion.
Additionally, these last three months really changed the face of the crypto-market. Notably, NFTs-led Solana spiked by 945.66%, literally, in just three months.
However, Solana flipped Cardano not only because Solana is performing well, but also because Cardano is just not performing competently. In fact, it has a lot to catch up on because of its poor performance.
In just a week, over 550,000 addresses have exited Cardano. And, even transaction counts at one point fell down to four-digit figures.
First of all, ADA is not following broader market cues. After failing to breach the $2.28-resistance, it flipped the $2.07-support into resistance.
Additionally, this is also why its correlation with Bitcoin has dropped to – 0.61, the worst figures observed since ADA’s genesis.
But, can Solana maintain this hike?
On the volatility front, at press time, it seemed that SOL was at its lowest year-to-date (YTD). What’s more, strong volumes showed that the rally has been led by investors. So, if investors slow down, the rally might as well cool down without fueling a corresponding fall in the altcoin’s price.
In other words, if the market sentiment is to be believed, Solana may just be the new Cardano. As far as market position is concerned, if not characteristics.Source