- Solana (SOL) made a solid comeback, recording a 35% gain in just 48 hours. It is targeting to overtake Binance Coin (BNB) as the fourth highest-ranked coin.
- According to an analyst, SOL has no crucial news fueling its ongoing rally; henceforth, the asset could be taking advantage of the broad market recovery.
The native token of the high-performing Solana blockchain, SOL, emerges among the assets with significant gains in the past 24 hours after staging a bullish reversal from the sudden broad market pullback.
At press time, SOL was trading at $152 after surging by a staggering 9% in the last 24 hours.
According to our data, the asset reached $149 yesterday, August 6, rallying about 35.8% after declining to as low as $110. Currently, it trails Binance Coin (BNB) by a market cap of $600 million, threatening to reclaim its position as the 4th largest crypto.
In investigating this situation, CNF observed that the recovery was affected by major stock indexes like the S&P 500 and the Dow Jones Industrial Average. Fascinatingly, analysts attribute it to a natural recovery emanating from the oversold situation of the markets. To the managing partner of Psalion Tim Enneking, the sudden volatility and the “to-and-fro” movement of the prices is purely due to the irrational fear and relief acting by the fiat market.
This pricing roller coaster, of which Solana is only one, albeit prominent example, is due purely to fiat markets acting with irrational fear one day (S&P down 3% yesterday) and irrational relief the next (S&P up 2.4% at one point today)…Crypto, unfortunately, front ran the former trend (BTC down over 15%, ETH down over 20% and crypto markets generally crushed on Sunday), and, fortunately, also front ran the recovery (with, for example, BTC up 10% yesterday while fiat stock markets were still getting hammered).
More Analysts Join the Solana’s (SOL) Price Discussion
Commenting on the widespread trends in the digital market, an investment advisor for Gerber Kawasaki Wealth & Investment Management, Brett Sifling, disclosed that there is no noticeable Solana news fuelling the rally. According to him, SOL is likely experiencing recovery with the broader crypto market.
Analyzing the intricacies of the SOL market, blockchain researcher Pat Doyle for digital asset data provider Amberdata also observed that the asset is showing massive resilience and robust fundamentals.
According to him, key metrics such as the increased Decentralized Exchange (DEX) volumes, overall ecosystem expansion, and the growth in active users demonstrate the underlying strength of the blockchain. However, he admitted that Solana remains undervalued compared to Ethereum (ETH). Regarding market cap, Solana’s valuation is currently at 22% of Ethereum’s.
Elaborating on this, Doyle further stated that the ongoing growth and adoption within the ecosystem could facilitate a steady price appreciation over time.
Another comment from the managing partner and head of liquid investments at CoinFund, Seth Ginns, also establishes that SOL benefits from several tailwinds.
Solana is benefiting from several tailwinds. Onchain activity has been strong, and there’s an expectation for new features and upgrades to ship between now and the big Solana developer conference Breakpoint next month. It has also graduated into the realm of megacaps that have the confidence of tradfi, so it trades as a lower-risk asset that still has a lot of upside potential as its ecosystem expands.
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