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Why is Solana down by 30% from its 2024 high?
Published
3 weeks agoon
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adminSolana price has remained in a deep bear market, falling by over 30% from its highest point in 2024.
Solana (SOL), the fifth-largest cryptocurrency in the industry, was trading at $145, down from its year-to-date high of $210. Its valuation has retreated from a YTD high of $86 billion to $68 billion.
SOL is in a bear market because of its correlation with Bitcoin (BTC) and other altcoins. Bitcoin has dropped by almost 20% from the YTD high while coins like Ethereum (ETH), Avalanche (AVAX), and Cardano (ADA) are down by over 30%.
Altcoins like Solana typically make bigger moves than Bitcoin. They perform better when Bitcoin is rising and significantly underperform when it is in a downtrend. For example, BTC rose by 70% between Jan. 1 and March 24, while SOL and ETH rose by over 80% during the same period.
Solana has also retreated as it faces substantial competition from Tron (TRX), which recently launched SunPump, a meme coin generator. The DEX volume on Solana in the past seven days has fallen by almost 9% while Tron’s has risen by over 210% to $1.70 billion.
Most of Solana’s meme coins have also retreated. Dogwifhat has dropped by almost 70% from its highest level this year, while Book of Meme (BOME) has fallen by 80% from its all-time high.
Tron has also overtaken Solana in DeFi total value locked, the number of active addresses, and stablecoins. Tron has over $8.3 billion in assets, 2.47 million in addresses, and almost $60 billion in stablecoins. In comparison, Solana has $5.16 billion, 1.74 million, and $3.9 billion, respectively.
Solana’s futures open interest has fallen
Meanwhile, Solana’s open interest in the futures market has been in a downtrend. Most recently, the interest peaked at $3 billion in July and has pulled back to $2 billion, signaling waning demand.
Solana has also dropped because of the ongoing performance of spot Ethereum ETFs. The latest data shows that they have not become popular. They have had cumulative outflows of $481 million and have shed assets in five of the last six weeks.
Therefore, if the trend continues, there is a likelihood that companies like Blackrock, Fidelity, and Franklin Templeton will not apply for a spot Solana ETF. The SEC has also been reluctant to approve these funds. Earlier this month, the agency turned down Cboe Global Markets’ 19b-4 filing for a Solana fund.
Technically, as shown above, the pullback is likely part of the formation of a bullish flag pattern. It is also part of the hand section of the cup and handle pattern on the weekly chart. If these patterns work out well, Solana will likely bounce back later this year.
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DeFi
Sui forms a rare bullish pattern as open interest hits all-time high
Published
4 days agoon
September 16, 2024By
adminSui, the popular Solana-killer, continued rising on Sunday, Sep. 15 as sentiment in the crypto industry improved.
Sui (SUI) jumped to an intraday high of $1.10, its highest level since Aug. 12, and 137% above its lowest point last month. This recovery makes it one of the best-performing top 100 cryptocurrencies.
Futures open interest jump
The coins recovery has coincided with strong demand in the futures market, where open interest has jumped to a record high. According to CoinGlass, the interest rose to $295 million, crossing the previous record high of $289 million. It is a significant increase from August’s low of less than $60 million.
Futures open interest is an important number that looks at the volume of unfilled put and call orders. A higher figure is a sign that an asset is seeing substantial demand among futures traders. Most of this interest is among Bybit traders followed by Binance, and Bitget.
Additional data shows that Sui’s network is gaining traction among developers and users. The total value locked in its decentralized finance industry has risen by over 16% in the last 30 days to over $703 million. Most of these assets are in NAVI Protocol, Scallop Lend, Suilend, and Aftermath Finance.
Sui’s stablecoin volume has jumped to over $364 million while the volume of its decentralized exchange platforms has jumped by over 32% in the last seven days to almost $300 million. The most notable DEX platforms in its applications are Cetus, Kriya, and DeepBook.
Sui has also found use cases outside the crypto industry. In a statement last week, the network said that it was being used by 3DOS, a manufacturer of 3D printing devices. The company selected Sui because of its quick throughput and lower transaction costs.
Sui price nears key resistance
On the daily chart, Sui has formed an encouraging and rare inverse head and shoulders pattern, which is often a bullish sign. It is now nearing its neckline at $1.165, its highest point in May and June and the 38.2% Fibonacci Retracement point.
Sui has also jumped above the 50-day and 200-day Exponential Moving Averages while the Percentage Price Oscillator has remained above the neutral point.
Therefore, a break above the H&S neckline at $1.66 will likely lead to more upside as traders target the 50% retracement point at $1.3190.
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Blockchain
Sonic Labs announces bounty program with developer incentives
Published
1 month agoon
August 20, 2024By
adminSonic Labs, formerly known as Fantom, has announced a bounty program aimed at incentivizing developer activity ahead of the Sonic network launch.
The Sonic Boom and Sonic Gems bounty program seeks to support the first wave of applications on the Sonic platform, according to a press release. The initiative targets key blockchain verticals, including exchanges, payments, tooling, stablecoins, gaming, and lending, among others.
Fantom (FTM) will transition to Sonic (S) later this year.
Boosted rewards for users
Sonic Gems are points that will allow holders to earn a share of the new Sonic token. Developers will receive Gems, which will then be distributed to users.
The bounty program will run for nearly 13 weeks, concluding on Nov. 4. During this period, up to 30 projects will receive Gems as part of a 190.5 million S airdrop, accounting for 37.5% of the allocation. Users have the opportunity to access a variety of applications and benefit from boosted rewards.
The total reward is approximately $28 million, Sonic Labs noted in a post on X.
We’re adamant about providing our ecosystem of developers with the rewards they deserve, both in the short and long term, and we’re thrilled to roll out Sonic Boom to accomplish just that. I can’t wait to see our builder’s creative solutions as we prepare for Sonic’s mainnet launch later this year.
Michael Kong, chief executive officer of Sonic Labs.
Sonic’s upcoming mainnet follows the Fantom Foundation’s launch of the Sonic upgrade, which aims to offer a layer-1 network with high throughput. Sonic is capable of processing over 10,000 transactions per second, a significant increase from the 2000 TPS possible with the Fantom Opera network.
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