With the recent approval of Bitcoin exchange-traded funds (ETFs) injecting new inflows and igniting a sense of bullish sentiment in the market, Solana (SOL) is emerging as one of the top gainers in the past 24 hours. The cryptocurrency has experienced a 4.5% surge, trading at $99, aiming to reclaim the significant $100 milestone lost during a recent deep correction.
Solana, holding the fifth position among cryptocurrencies by market capitalization, could undergo a substantial price surge if the current upward momentum continues and successfully breaks out of its downtrend correction. Renowned crypto analyst Ali Martinez suggests that Solana is breaking out from a bullish flag pattern formed on the 4-hour chart. A sustained close above the $106 mark can trigger a remarkable 47% rally, propelling SOL towards the price range of $150 to $165. However, at the time of writing, Solana has retraced below the upper boundary of the bull flag formation, which is positioned at $103. Nevertheless, a breakout could be imminent if the growing interest in the token persists alongside a sustained bullish momentum. This scenario would position SOL to regain its previously lost highs and set its course toward Ali Martinez’s price targets within $150 to $165.
In addition to its price performance, Solana has showcased remarkable growth during the fourth quarter of 2023, positioning itself as a leader in the crypto market rally, according to a recent report by Messari. One of the key achievements for Solana in Q4 was its notable increase in market capitalization. SOL concluded the year with a market cap of $43.8 billion, marking a staggering 423% quarter-on-quarter (QoQ) growth and an astonishing 1,106% year-on-year (YoY) increase. This growth propelled SOL to surpass notable tokens such as ADA, USDC, and XRP in market cap, securing the 5th position among all tokens. It is worth noting that Solana began 2023 ranked 17th in market capitalization, highlighting its exponential rise in prominence.
Furthermore, Solana’s decentralized finance (DeFi) Total Value Locked (TVL) experienced significant growth, with a 303% QoQ and 505% YoY increase, reaching $1.5 billion. The average daily spot DEX volume also experienced substantial growth, reaching $359 million, with key contributors like Orca, Raydium, and Phoenix.
In the NFT space, Solana’s average daily NFT volume increased by 356% QoQ, reaching $4.8 million. Its market share of NFT volume excluding Bitcoin grew from 9% to 26% QoQ, demonstrating its increasing significance in the NFT market.
Overall, Solana’s impressive price performance, market cap growth, and significant strides in DeFi and NFT metrics position it as a noteworthy player in the crypto industry. It remains a key asset to watch for both traders and investors.
