Solana continues to shine in the cryptocurrency market, outperforming Bitcoin and Ethereum thanks to the still popular memcoin narrative. The sector is attracting capital on-chain and SOL is in a bullish phase heading towards the $200 mark.
Both on-chain data and derivatives suggest a possible increase in future speculation and a continuation of the bullish phase.
Meanwhile, other cryptocurrencies such as Solana are also actively moving forward, also fueled by the rich memcoin trend: what coin are we talking about?
Let’s see all the details below.
Summary
Solana is better than Bitcoin, Ethereum and the cryptocurrency market thanks to memcoin
Solana is leading the charge in the cryptocurrency market, outperforming Bitcoin, Ethereum and most altcoins over the past 30 days, fueled by the memcoin frenzy. According to CoinGecko, cryptocurrency grew by 18.2% in a monthrising from 146 to the current 173 dollars.
Bitcoin, on the other hand, saw its price increase by just 6%, while Ethereum actually turned negative, marking -3.4%.
However, specifically in the last few days from the beginning of the week Solana presses the gas pedal, leaving the rest cryptography behind.
In fact, since Monday, October 21, Bitcoin and Ethereum have been losing percentage points, while SOL is moving against the trend and aiming for new local highs.
As a user “Punk9277notes that the last time Solana recorded a 20% breakout from the orange coin’s market share, prices skyrocketed. In December 2023 and March 2024, in both cases following a similar scenario, the cryptocurrency grew by 60%.
SOL excels in calm upward movement
Mindshare still in normal range – no breakout
The last two times SOL euphoria resulted in a 20% (2x BTC) breakout during
– December 2023
– March 2024
Both times prices increased by +60%.I say we’re going MUCH higher
(data source: @_kaitoai) pic.twitter.com/Ljodw0Z6zn
— Yu Hu 🌊 (@Punk9277) October 24, 2024
As Santiment notes, Solana has recovered significantly after yesterday’s slight pullback. When traders start to become bearish, betting down, SOL surprises everyone and starts pumping again, highlighting the misbehavior of the masses.
These numbers position the currency as a potential top pick for the next bull market, expected in the first quarter of 2025.
We also remember how SOL recorded a 453% increase in its value over the past year.
📈 Solana is outperforming most altcoins as prices look to recover from Wednesday’s big drop. The #5 stock by market cap continues to be a prime example of how the crowd routinely gets it WRONG. View the current bearish sentiment as a sign that SOL could continue to rise. pic.twitter.com/pRkCnyxRxh
— Santiment (@santimentfeed) October 23, 2024
Memecoin storytelling supports Solana on-chain metrics
As already mentioned, The rise in prices for Solana is caused by the excitement in the field of memcoinswhich draws capital from Ethereum and other chains of the crypto world.
Meme creation platform Pump.Fun has seen a surge in volumes since the second half of September, reflecting the excitement at the moment.
According to Dune Analytics, this protocol has processed more than 15 thousand deployment transactions per day on Solana over the past 30 days.
Last week there was a real explosion of activity: more than 30 thousand new memcoins appeared daily, and commissions for the platform grew.
Some of the most representative memecoins of this golden moment on Solana are Goatseus Maximus (GOAT), Dogwifhat (WIF), Popcat (POPCAT) and Cat (MEW).
Emphasize how GOAT’s market cap went from zero to over $600 million in just two weeks..
An artificial intelligence bot funded by Marc Andreessen known as “Terminal of Truth” has been actively promoting it on cryptocurrency social media, supporting trades.
The token was created on October 10th by an anonymous developer using Pump.fun and was approved by Truth Terminal.
At the same time, memcoins allowed Solana to record The network’s revenues are close to March highs: about $4.5 million in revenue per day.
Blockchain in particular has increased this figure 10-fold since the beginning of September, highlighting that this trend accelerated again in October.
Meanwhile, the number of active network users has increased to a record level of more than 8 million.
It should be noted that such fees also help reduce the SOL inflation rate: more than 15% of newly issued tokens are now burned.
Net “Ethereum Killer” never ceases to amaze.
Another cryptocurrency that is growing thanks to Memecoin
Another cryptocurrency that is going through an emotional period thanks to memcoins is SUI.token of a blockchain project conceived as a competitor to Ethereum.
This coin is up 32.4% over the past 30 days, with the price rising from $1.53 to the current $2.02. SUI’s capital is $5.5 billion and its trading volume in the last 24 hours exceeds $1 billion.
Even so, memes such as Deepbook (DEEP), NAVX Token (NAVX), Sudeng (HIPPO), Fud (FUD) and Blub (BLUB) have generated speculative enthusiasm.
While the broader cryptocurrency market suffers from mixed emotions due to the performance of Bitcoin and Ethereum, these coins have a life of their own.
Thanks to their recent success, much of the crypto liquidity has moved to the SUI blockchain, fueling a strong bullish rally.
SUI, which hit a new all-time high two weeks ago, is now competing with Ethereum to create the best memcoin ecosystem.
We’ll see who comes out on top in the coming weeks.
#Battle of Memecoins#Solana 🆚 #Sui
Which team will you join? pic.twitter.com/xN7ahh5DXW
– Gate.io (@gate_io) October 23, 2024
Analysis of derivatives on Ethereum and Solana
To justify the positive dynamics of the Solana cryptocurrency and the greater speculative activity compared to Ethereum, there are several data from derivatives markets.
Solana achieved its highest open interest since January 2023, staking nearly $3.09 billion, according to platform Coinglass.
In just the last four days, open interest has increased by almost 3 million SOL worth 506 million dollars.
The cryptocurrency funding rate has stabilized at 0.009%, indicating a scenario in which there does not appear to be excessive demand for financial leverage.
A leverage peak could contribute to market volatility, causing the SOL price to accelerate further. However, in excessive quantities, this trend can lead to forced liquidations, in both the bullish and bearish directions.
Regarding Ethereumwe’ve seen open interest rise by almost $4 billion since August, despite the depreciation ETH price.
The amount bet on futures markets has now reached a total value of $14 billion, bringing speculative trading back into the spotlight.
At the same time, however, this figure is significantly lower compared to the peak amount of open interest of $16.5 billion recorded in May, before the collapse of cryptocurrencies.
The financing rate is 0.008%, the same as Solana.
It is worth noting that options traders on Ethereum, despite the unfavorable forecast, are determined optimistic about December 27 expirations.
The price of ETH is expected to reach $6,000 by the end of the year, given the 110 million notional value of bets (calls) placed at that price.
Big claims also include prices of $5,000, $4,000 and $3,000, with a face value of $1.6 billion.
The maximum pain price is set at $2,400.
