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Solana Market Cap Hits ATH, SOL Leads Weekend Gains

  • Solana surged from ~$212 to ~$244 over the weekend, outpacing Bitcoin and Ethereum.
  • Solana’s market cap hit an all-time high, supported by record-breaking daily net inflows.
  • SOL’s revenue doubled its previous all-time high last week, signaling strong ecosystem growth.

Solana (SOL), has taken center stage with its remarkable weekend surge past Bitcoin and Ethereum. In just over two days, Solana market cap reached ATH and the start of what many expect – Solana Season.

With Bitcoin (BTC) and Ethereum (ETH) hovering around their positions, Solana (SOL) saw some significant upward movement from $212 to $244 – a 15% jump – which established it as the weekend’s top performing cryptocurrency.

SOL Outshines BTC and ETH

According to data from CoinGecko, SOL rose to dominate the cryptocurrency market during the weekend. With higher trading volume and increased institutional demand, it topped the returns of Bitcoin and Ethereum comfortably.

The metrics indicated that by Sunday evening SOL held the top position in Daily Net Inflows leaderboard while holding much less market capitalization compared to both ETH and BTC. Ethereum has a market cap 3.3x bigger than Solana and Bitcoin’s is 16x bigger still, Solana outperformed with inflows.

On Saturday, Solana reached massive trade volumes, and its market capitalization stood on a record high floor driven by boosted investing actions. This is a significant blow for the network which has expanded incredibly fast despite initial doubts following technical glitches.

In parallel, SOL’s Real Economic Value—a measure of revenue generated by the network—doubled its previous ATH last week, according to blockchain analyst Austin Barack. The doubling of this metric signals robust demand for Solana’s ecosystem, from decentralized finance (DeFi) to non-fungible tokens (NFTs).

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From Saturday to Sunday night, SOL’s trading volumes surpassed those of all major altcoins, according to crypto researcher 0xGumshoe. This outperformance underscores growing interest among both retail and institutional investors.

https://twitter.com/0xGumshoe/status/1858299083032551793

Further cementing its bullish narrative, SOL’s liquidity flows were significantly higher than its competitors, a sign that whales are accumulating rather than offloading their holdings.

What’s Driving the Solana Rally?

Several factors have fueled the SOL rally:

  • Institutional Demand: Solana’s growing reputation as a scalable and efficient blockchain has attracted institutional players.
  • Ecosystem Expansion: The network continues to host new projects, particularly in DeFi and GameFi.
  • Market Sentiment: Positive sentiment around Solana’s ability to weather past challenges and thrive has bolstered confidence.

While the broader market is staying engaged with titans such as Bitcoin and Ethereum, Solana’s performance in market cap and revenues proves tempting.

Irrespective of whether this momentum is sustainable or not, there is one certainty, Solana is now an important component in this new cryptocurrency world.

Trump’s Win Sets Stage for a Solana ETF

The 2024 U.S. presidential election has sparked optimism in the crypto industry. With President Donald Trump’s pro-crypto platform promising to make the U.S. a blockchain hub, analysts expect significant regulatory shifts.

VanEck’s digital asset research head, Matt Sigel, believes Trump’s administration could end the SEC’s crypto gridlock. “The new leadership will likely encourage innovation and capital formation in digital assets,” Sigel stated.

Sigel criticized the SEC’s leadership, likening it to a “deadbeat parent” following its legal loss to Grayscale. The case led to the approval of Ethereum ETFs, fueling hopes for altcoin ETFs, including Solana.

Solana’s low fees and scalable blockchain make it a prime ETF candidate. With Trump’s win, analysts believe Solana ETFs could lead a new wave of regulatory approvals.

As the crypto space anticipates these changes, Solana’s potential ETF approval could set a precedent for altcoin investments in 2024.

Disclaimer

The contents of this page are intended for general informational purposes and do not constitute financial, investment, or any other form of advice. Investing in or trading crypto assets carries the risk of financial loss. The forecasted data (also called “price prediction”) on this page are subject to change without notice and are not guaranteed to be accurate.

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Arnold Kirimi
Arnold Kirimi
Arnold Kirimi is a crypto and Web3 journalist from Nairobi, Kenya. With a sharp eye for emerging trends and a talent for demystifying blockchain jargon, Kirimi turns complex concepts into compelling narratives. Featured in top outlets like Cointelegraph, DailyCoin and CryptoSlate.