Solana Soars, Sparking Hypothesis: Can the ‘Ethereum Killer’ Reside As much as the Hype?

• SOL’s YTD efficiency is an 809.50% improve after beginning the 12 months beneath $10.
• Solana’s TVL has been recovering, however Ethereum stays on prime of different chains.
• SOL might hit $100 earlier than the 12 months ends if the buildup of the token will increase.

Solana (SOL), one of many prime 10 cryptocurrencies out there, is exhibiting positive aspects. At press time, the cryptocurrency was $91.25, after it gained 17.34% within the final seven days.

SOL’s rise this 12 months has been great contemplating that it was one of many casualties affected by the FTX collapse. With its current run, many analysts consider that SOL may very well be a three-digit token earlier than the 12 months ends.

Each Initiatives Can Co-Exist

When the 12 months began, SOL traded a bit of beneath $10. However an 809.50% improve, in response to CoinMarketCap, on a Yr-To-Date (YTD) foundation introduced again the notion that Solana may very well be the “Ethereum (ETH) killer.”

ETH has additionally had a great 12 months, however it’s nothing in comparison with SOL. It is because ETH has gained 94.03% since January 1. Just lately, Coin Version reported how Solana DEX quantity surpassed that of Ethereum, implying a surge in community exercise over the second-ranked blockchain per market worth.

In November, crypto dealer Jacob Canfield defined that Solana would dominate Ethereum prefer it did in 2019 and 2020. In protection of his opinion, Canfield mentioned that there have been distinctive tasks constructed on the Solana blockchain that might propel its dominance. 

Nonetheless, on December 2, Solana’s co-founder posted that Solana wouldn’t “kill” Ethereum, as was predicted in some corners. In his put up, he pleaded with the Solana neighborhood to not deliver up the narrative however to deal with constructing. 

Solana TVL Rises and Token Goal $100

There’s one space the place Solana has discovered it laborious to surpass Ethereum, and it’s when it comes to its Whole Worth Locked (TVL). In response to DeFiLlama, Ethereum’s TVL was $28.55 billion. Solana, alternatively, had a TVL of $1.31 billion.

Nonetheless, Solana’s TVL has skilled 166% progress within the final 30 days. This improve implies that market gamers’ belief within the protocol has elevated. It’s also an indication that Solana is getting extra liquidity from these gamers, who’re anticipating a great yield from the venture.

In regards to the value motion, the SOL/USD 4-hour chart confirmed that the token was overbought. This was confirmed by the Relative Energy Index (RSI), which was 84.56 on December 22. Consequently, SOL dropped from $97.66 to $92.37.

Additionally, there’s a probability that SOL might drop from the $90 mark if market members determine to take earnings. Moreover, the Bollinger Bands (BB) confirmed that SOL’s volatility had turn into excessive. So, if accumulation picks up quickly, SOL might lastly attain $100.