TL;DR
- Solana's SOL token has surged 15% in the last 24 hours, hitting a 20-month high of over $88 and becoming the fifth-largest cryptocurrency with a market capitalization over $37 billion, surpassing to Ripple's XRP.
- The rally can be attributed to Solana's thriving ecosystem, which includes high trading volumes, an increase in daily active users, and significant nft sales, with Solana surpassing ethereum in nft sales volume over the past week.
- Despite SOL's growth, there is caution among investors against FOMO. On the other hand, analysts like crypto King and Jacob Canfield remain optimistic, suggesting potential values of $300 and $1,000, respectively.
SOL reaches new yearly high
The revival of the cryptocurrency market continues, with some digital assets launching real bull runs. One example is Solana's native token, SOL, which has soared 15% in the last 24 hours, reaching a 20-month high of $88 (based on CoinGecko data).
Furthermore, the market capitalization of the coin surpassed the $37 billion mark. Thus, SOL became the fifth largest cryptocurrency in the world, surpassing Ripple's token, XRP.
What's behind SOL's rally?
One factor behind the asset's latest bullish trend could be the thriving Solana ecosystem. As observed on DefiLlama, trading volume on the blockchain protocol has skyrocketed in recent weeks. Has overcome 1.5 billion dollars in the last 24 hours and the 9 billion dollar mark weekly.
Solana DeFi's daily active users (DAU) have also increased lately. excessive the 200,000 level from December 14 onwards.
Last but not least, nft sales have also seen a boom on Solana. As ethereum?tab=Top+nft+Sales&headerPeriod=7d” target=”_blank” rel=”noopener” data-wpel-link=”external”>revealed According to CryptoSlam, Solana nft sales volume over the past seven days has skyrocketed to almost $105 million. ethereum, on the other hand, has lagged behind with approximately $80 million recorded for the same period.
Beware of FOMO
It is worth noting that the rapid price increase of SOL lately could create the so-called FOMO (“Fear of Mission Out”) effect. In other words, some investors may get caught up in the rising valuation and jump on the bandwagon without doing due diligence.
According to Santiment, the asset he sits is at the top in terms of social volume, which means people find the topic quite intriguing right now.
“In each case, when spoken widely at this level, FOMO will create price peaks. If you have any, take a cautious approach,” warned the behavioral analysis entity.
Will the show continue?
Many experts believe that SOL is poised to experience a new surge in the near future and is currently on the cusp of an astronomical surge.
X (Twitter) user crypto King and Jacob Canfield presented the most bullish predictions. The first believes that the asset could rise to $300, while the second imagined an outrageous goal of $1,000.
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