January 15, 2022
Cryptocurrencies: Daily Update
Bitcoin (BTC) and Ethereum (ETH) continue to comprise a combined 59% dominance of the total cryptocurrency market cap, but there may be another name ready to join the two existing cryptocurrency staples very soon.
Solana (SOL) is the #4 non-stablecoin by market cap and has seen a 266% increase in its market cap dominance from the beginning of Q4 2021 to the present. It now holds 2.28% of the total cryptocurrency market cap.
We have been very excited about Solana for quite some time now, and firmly believe that Solana could be, analogously, to Apple what Ethereum is to Microsoft.
Ethereum is the first major Layer 1 decentralized finance blockchain network and is designed for open-source development and deployment by institutional and commercial users, while Solana is also a Layer 1 defi network but is designed far more for the retail user.
Ethereum’s blockchain is arguably bulkier and better suited for a wider array of developer tasks, while Solana’s blockchain is cleaner, faster, and easier to use. Transacting on the Solana Network is a lot cheaper too, with essentially $0.001 on nearly every transaction.
In addition to its fundamental advantages, Solana also has a very interesting technical setup at the moment.
SOL is testing support on its 200-day moving average for the first time in 6-months. The last time SOL tested support at its 200-DMA marked the bottom of the May 2021 crypto crash on July 20th.
There are several aspects of Solana’s current technical setup that mirror the bottom of the 2021 crash. Here is what we’re seeing:
All together, the technical similarities between Solana now and Solana at the bottom of last May’s crash are pretty convincing that we’ve seen the bottom of this bearish cycle as well.
The last note that I will leave you with is this; after bottoming on July 20th, Solana proceeded to make a more than +820% gain in price over the next 52-day period. Now that Solana is even more mainstream and still only 1/7th the market cap of Ethereum, I wouldn’t even be mildly surprised to see the price of SOL explode once again.
**If we discussed a cryptocurrency that you would like to trade but isn’t offered on your current crypto exchange, please see coinmarketcap.com in order to view a profile on any tradable cryptocurrency, as well as a list of exchanges that do offer the coin for trading.**