Solana (SOL) does not slow down on the way to the top. SOL shines in the market with significant success and breaking all-time highs (ATH). The bullish wave pushed SOL to # 6 on CoinMarketCap, making it the sixth-largest crypto asset by market cap.
SOL, referred to by many as an “Ethereum competitor,” seems to be eliminating weaker competitors in the market. This time, XRP had to give up Solana, the 6th spot on CoinMarketCap, which has a market cap of over $ 50 billion by crypto trading signals. XRP, on the other hand, is just a few billion behind this market cap.
Solana: challenging the downtrend!
The SOL price has gone up significantly. Interestingly, SOL has taken a similar step that ADA did before. Cardano (ADA) fell in May, while Bitcoin and other altcoins lost up to 20% in value, while ADA holders were able to challenge the downtrend and maintain ADA value all the time. It was seen that SOL took a similar step this week. While many altcoins have experienced declines in bitcoin prices, SOL has largely retained its value.
The price action moved in line with analysts’ forecasts, reaching the $ 200 level. SOL has managed to become one of the most profitable cryptocurrencies on the market, climbing over 30%. Analysts point to $ 250 as the next target price for Solana. However, at the time of writing, SOL is trading at $ 176.
Is Solana going to devalue Ethereum?
Market players exchange views on the possibility of SOL to overthrow Ethereum. Although Ethereum’s market capitalization is significantly higher than Solana’s, analysts still say this opportunity should be considered. Some analysts from SafeTrading and investors have argued that if SOL holders topple Ethereum, the likelihood of Ethereum being able to topple Bitcoin will plummet.
This claim has garnered a lot of attention from the cryptocurrency ecosystem, and cryptocurrency trader from SafeTrading shared that Bitcoin is the only one in its league, but Ethereum is struggling with many altcoins with similar features on the market.
However, another popular investor does not believe SOL can outperform Ethereum in market capitalization, although it does not rule out the possibility. A popular investor said that XRP outperformed Ethereum twice in the past and then replaced Ethereum again, last year there were rumors that BNB would also outperform Ethereum, but Ethereum remained.
Stating that such an opportunity is always possible, the popular investor stated that Ethereum has a more distributed network than Solana, and that Ethereum is different from other similar projects in this regard.
Gold, S&P 500 and Bitcoin: Are Assets Moving Together?
• This week has been a week of visible cryptocurrency pullbacks. However, not only cryptocurrencies, but also the S&P 500 seem to be falling. The S&P 500, the index of the 500 largest public companies, ended the week with a 1.7% decline after falling for 5 consecutive days.
• Likewise, due to the fall in cryptocurrencies, the total market value has dropped from $ 2.43 trillion to $ 2.2 trillion, with a 9% decline.
S&P 500 and Bitcoin.
It can be stated that the situation in which the S&P 500 and Bitcoin move together is constantly changing. Although these two assets show similar movements from time to time, it is seen from time to time that they develop in inverse correlation. The correlation coefficient from -1 to 1 for 1 year reached 0.22. This means that they demonstrated 22% of such movements.
However, in 2020, Bitcoin appears to be moving in a more correlated manner with gold, which is seen as another safe haven. While gold and bitcoin showed similar movements at 34% in 2020, it can be seen that there has been a negative turnaround this year.
In addition, in March 2020, both gold, the S&P 500, and bitcoin experienced a very serious decline. Because people who panicked over the coronavirus started converting all their investments into cash. However, the contactless life and the world of online shopping caused by the coronavirus have further increased interest in bitcoins. Thus, Bitcoin has shown the best results by crypto trading signals since the fall in March.
As we mentioned above, there has been a noticeable decline in the price of bitcoins this week, with the leading cryptocurrency dropping to $ 43,000 in a short time from the $ 53,000 border. Currently, $ 43,000 is considered a very important level.
However, the beginning of the BTC weekend with a fresh pullback suggests that $ 43,000 can be tested again. Analysts believe that if the $ 43,000 remains strong, a new rise in BTC could begin.
Worst case scenario for Cardano ADA.
Cardano has been one of the most talked about blockchains in the cryptocurrency community this year. The startup began when concerns were raised about energy sustainability, especially as a result of ongoing discussions about Bitcoin’s energy consumption.
Months passed and Cardano began to dominate crypto conversations. More recently, Cardano unveiled the highly anticipated smart contract feature on the testnet. A PoS algorithm that will put Cardano on a par with the likes of Ethereum and Solana will soon be revealed. However, the Cardano smart contract may have a small problem after being found to be ineffective, and this is natural.
Cardano ADA fell below $ 3 amid fears over smart contracts.
• “So ADA smart contracts have failed. This is what happens when you do something under pressure. 4 years is less than enough time to release Imo. Maybe we had to wait 8 years. Since it is always better to make a promise in cryptocurrency than to present it directly, this is very promising. ”
The above statement is one of many user comments criticizing the Cardano network for a recent development where DeFi projects on the Cardano testnet were unable to execute DeFi transactions due to network restrictions. Apparently, only one transaction can be executed per block. It is reported that some users have already complained about problems with the first update.
As another Twitter follower pointed out, any solution to the problem will lead to the centralization of the network.
For your information, the market is in retreat ADA is focusing on news that Cardano smart contracts don’t actually work. It can only execute 1 transaction per block for each smart contract due to the underlying architecture (UTXO). any other fix requires centralization. ADA is the third largest cryptocurrency by market capitalization, and this must not be forgotten. ”
As a result of poor performance, the price of ADA has lost some of its value. After hitting an all-time high of $ 3.10 eight days ago, the ADA is now down to $ 2.38, with daily losses exceeding 8% – analyst of SafeTrading.
Cardano founder Charles Hoskinson has previously responded to these allegations, but market participants, however, are unhappy with his response, saying it is a vague and harmless issue. As crypto Twitter continues to flood emotions from viewers and ADA investors, critics are now weighing the issue.