Solana market cap reaching an all-time high could increase bulls confidence on their way to breaking past the previous price ATH that was set more than two years ago.
Solana, a layer 1 blockchain, has surpassed its previous market cap, hitting a new value of over $77 billion at a trading price of $179.35 as of the time of writing this news.
The coin’s bullish trend started in September 2023, rising from $19.66 to $24.25 in October. It then experienced a minor pullback within that month before the price increased to $49.74. The layer 1 coin was already trading at around $126 by mid-December. Fast forward to this year: SOL dropped to $77.50 on January 23 before entering a sideways trend and eventually breaking out to reach $137 at the beginning of this month. It has continued in that bullish trend, rising to its current price of $179.
All these show the consistency of Solana bulls as they push the price higher. With the price continuously spiking, more buyers are attracted to the coin, which increases the money invested and, at the same time, the market capitalization. The market cap reaching an all-time high could increase bulls confidence on their way to breaking past the previous all-time high that was set more than two years ago.
Factors Triggering the Surge
The speed of the blockchain could be said to be one of the factors pushing the price of the coin. The network can handle thousands of transactions per second (tps), with a throughput of up to 65,000 tps. Moreover, the ongoing Solana meme coin frenzy has also added to the spike in SOL price. Two notable coins among the meme coins are Bonk and dogwifhat (WIF).
Bonk, which currently has a market cap of $1.95 billion, has seen a steady rise from 0.0000002182 as of October. The layer 2 coin reached a high of 0.0000279057 towards the end of 2023. As of this year, the price of the coin was consolidating at 0.000003900 before skyrocketing to 0.0000475227. Currently, the coin is trading at 0.0000368116. Hence, from October last year to this time, BONK has had an astonishing 16,700% increase.
Dogwifhat, one of the newest meme coins on the Solana network, has also been on a bullish rally, rising from 0.25261683 as of December to a high of 3.56810594. The current price of WIF is now 2.95896266, which is over 1,070% higher than last year.
Looking at these factors and some others, some analysts have argued that the price of Solana is still a shadow of where it will be in a few years’ time, especially considering that its market cap is significantly lower than that of Ethereum, which is presently more than $440 billion. With the SOL blockchain being faster than the ETH blockchain, SOL optimists believe that Solana is poised for more adoption and could even start competing with ETH soon. Having a market cap that competes with ETH’s means the price will be far higher than what it is today.
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