Also known as the “Ethereum killer” among the community, Solana (SOL) is emerging as one of the fastest growing cryptocurrencies in the ecosystem. The altcoin movement of NFTs has drawn capital rotations from Bitcoin and Ethereum to the SOL ecosystem. After spending August in price discovery mode and then a short correction, analysts think the $216 ATH could be surpassed.
Analysts expect SOL to rally based on developments in the Solana network
Solana’s Ignition hackathon resulted in 568 new projects created on the network’s Blockchain. The new projects are expected to launch the next cryptocurrency applications and web3 infrastructure in Solana.
Solana’s locked total value (TVL) was $1 billion at the end of July; Each of the ecosystem’s top 5 projects currently has a combined total value of over $1 billion in lockdown. The network has attracted several NFT projects and customized applications with varying degrees of rarity. Matty Tay, head of growth at Solana, reflected on the growth of the top five projects in the SOL network in a recent tweet:
At the end of July, the entire Solana DeFi ecosystem had $1 billion in TVL. Now there are 5 separate projects, each worth over $1 billion in TVL.
Analysts argue that Solana is not as decentralized as other cryptocurrencies
Summarized by Balaji Srinivasan, the former CTO of Coinbase, the “Nakamoto coefficient” is used to estimate how centralized a Blockchain network is. Using the Nakamoto Coefficient, higher scores correspond to more central levels. When measuring Solana using the Nakamoto Coefficient, it scores higher than Bitcoin and Ethereum (ETH), contrary to popular belief.
Interestingly, 78% of Solana’s circulating supply is collected based on data from Solana Beach, a SOL ecosystem statistics platform. The increase in SOL’s stock offering fuels a bullish narrative for the SOL price. The Twitter analyst, nicknamed @CanteringClark, is optimistic about the SOL price and expects the altcoin project to outperform the others. Clark says:
There are many reasons why we have stayed on the SOL for so long up to this point. Do you see the trend yet? Even on a day when Bitcoin is the main show, SOL is outperforming. Throw fast.
SOL could be first in flow from BTC to altcoin projects to Elliot Laybourne
Elliot Laybourne, a cryptocurrency analyst, is optimistic about SOL price as the capital rotation from BTC to altcoin projects begins. Polkadot and Solana were the first two cryptocurrencies to lead the altcoin rally before Bitcoin started approaching its all-time high. Laybourne shared his analysis in a recent tweet:
I like the SOL chart for when capital turns from BTC to altcoin projects.
Laybourne also recently said:
As long as Solana stays above $85.00, I think the structural bull market is intact. Therefore, I expect to see buying on any dip towards $100. As long as Solana respects the uptrend channel, I maintain the long-term bullish price outlook.
Meanwhile, analysts predict the SOL price trend is ready to reach the ATH level of $225.
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