Solana climbs to top 4 over Binance BNB | Market Capitalization of more than 90 billion!
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It is quite remarkable how the behavior of the cryptocurrency market impacts every ecosystem. A case we could mention is that of Solana, which has recently experienced significant growth in its market capitalization and transaction volume.
If we look at CoinGecko, we can see that it ranks 4th in terms of market capitalization, standing at over $91 billion. Regarding transaction volume, it exceeds $12 billion, demonstrating significant activity on the network that could further boost its price.
At this very moment, Solana is priced at $204.45 USD, while a week ago it was at least $140 USD. It seems that this blockchain is beginning to gain prominence over its competitors, if we can call them that.
Since the 16th, the day it ended its fall, possibly due to a correction, its price has risen by 16%. According to the chart on TradingView, a drop could be expected to follow the pattern and then seek an impulse to elevate its value to higher levels. In this case, in my opinion, we could see a drop to $190 USD before beginning another growth cycle aiming to surpass the current price.
All signs indicate that the reason for this upturn from the previous fall is the liquidation of several short contracts worth millions of dollars. Essentially, investors have chosen to take advantage of the downturn by utilizing a trading strategy based on futures, borrowing from an exchange and speculating on the future price direction, in this case downward. It is about betting on a decline and buying at the lowest point before it surges again.
Obviously, this strategy can go wrong, for example, if one bets on a decline and the price starts to rise. This could lead to losses or the risk of liquidation as it deviates from the margins set by the investor, and the contract ends.
Something that caught attention was a meme coin called Slerf that did not have a good start on Solana. In less than 4 hours, the initial price of at least $0.02 surged to an incredible $1.20 before plummeting abruptly to the current $0.38, as reported by GeckoTerminal (which provides real-time information, unlike CoinGecko, which has a slight delay).
The reasons could be varied, but one gaining traction is the accidental burning of approximately $10 million from the presale funds. The developer himself admitted to messing up, although investors in the presale don't share the same sentiment and express dissatisfaction, thinking it was intentional. Some are urging to seek legal counsel.
It must be a challenging situation. The developer assures that every effort will be made to recover those funds, but admits to currently not seeing a solution.
- Main image edited in Canva.
- I have consulted information in decrypt.co.
- I have used Hive Translator to translate from Spanish to English.
Posted Using InLeo Alpha
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