With the recent green light for Bitcoin exchange-traded funds (ETFs), bringing in fresh investments and sparking optimism in the market, Solana (SOL) is standing out as one of the leading gainers over the last 24 hours.
The digital currency has seen a 4.5% increase, currently priced at $99, as it strives to recapture the crucial $100 mark that slipped away during a recent substantial market correction.
Solana Primed for Potential 47% Surge, Breaking Out of Downtrend
As the fifth-ranking cryptocurrency by market capitalization, Solana (SOL) is poised for a substantial price surge if the current upward momentum persists and successfully breaks through its downtrend correction.
According to insights from well-known crypto analyst Ali Martinez, Solana is showing signs of breaking out from a bullish flag pattern observed on the 4-hour chart.
SOL price target if a breakout successfully occurs. Source: Ali Martinez on X
For this potential surge to materialize, a sustained close above the $106 mark is crucial, potentially triggering an impressive 47% rally. This surge could catapult SOL into the price range of $150 to $165.
However, as of the latest update, Solana has retraced below the upper boundary of the bull flag formation, positioned at $103. Despite this, the potential for a breakout remains on the horizon, contingent on sustained interest in the token and a continuation of bullish momentum. Should these conditions persist, SOL could reclaim previous highs and target the price range outlined by Ali Martinez.
Solana’s Remarkable Q4 Performance and Market Cap Surge
Solana has emerged as a front-runner in the crypto market rally during the fourth quarter of 2023, as outlined in a recent report by Messari.
SOL’s market cap growth as of December 31, 2023. Source: Messari
A standout achievement for Solana in Q4 was its remarkable growth in market capitalization. The year concluded with SOL commanding a market cap of $43.8 billion, showcasing an extraordinary 423% quarter-on-quarter (QoQ) expansion and an impressive 1,106% year-on-year (YoY) increase.
This surge catapulted SOL into the 5th position among all tokens, surpassing the market caps of notable counterparts like ADA, USDC, and XRP. Notably, Solana began the year ranked 17th in market capitalization, underscoring its exponential ascent to prominence within the crypto landscape.
Solana’s Surging DeFi Metrics and NFT Growth in Q4
During the fourth quarter of 2023, the Solana network’s decentralized finance (DeFi) Total Value Locked (TVL) witnessed remarkable expansion, reporting a substantial 303% quarter-on-quarter (QoQ) surge and an impressive 505% year-on-year (YoY) increase, reaching a total of $1.5 billion.
The report by Messari also sheds light on the notable uptick in DeFi volume on the Solana network. The average daily spot Decentralized Exchange (DEX) volume experienced an astounding 1,116% QoQ growth, reaching $359 million.
Contributing significantly to this surge, Orca claimed a 45% share of the Q4 volumes, closely followed by Raydium with a 29% market share. Phoenix, functioning as a fully on-chain central limit order book, stood out by capturing over 9% of the DEX volume market share.
The daily chart shows SOL’s price trading just below the $100 milestone. Source: SOLUSDT on TradingView.com
Solana’s influence in the Non-Fungible Token (NFT) space also witnessed substantial growth throughout Q4. The average daily NFT volume recorded a robust 356% QoQ increase, reaching $4.8 million. Moreover, Solana’s market share of NFT volume, excluding Bitcoin, surged from 9% to 26% QoQ, underscoring its growing significance in the evolving NFT market.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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