215 Interactions, 2 Today
This week’s Return on Investment (RoI) for most alts has been negative. Nonetheless, as of press time, the market’s king currency, as well as the other alts, were showing signs of recovery. Solana’s pricing chart showed a similar picture. Despite a 14 percent weekly drop, the alt gained 0.95 percent in the last 24 hours and was trading at $32. Can SOL inch closer to a new ATH if this pattern continues over the next several days?
Well, the aforementioned question has a two-fold answer and a host of factors need to be considered before coming to a conclusion. To begin with, people from the community have increasingly been exposing themselves to Solana’s social media handles. CoinGecko’s chart indicated that the number of Reddit subscribers of Solana has drastically risen since the beginning of the year. In fact, at press time, the same stood at its 27,185 ATH.
Surprisingly, when SOL’s price began to fall in May, its market cap domination was unaffected. In fact, at the time of writing, it was a whopping 0.564 percent. In comparison, the alt’s dominance on January 1st of this year was only 0.01 percent.
At this point, the alt would have to overcome a few roadblocks in order to continue its upward trend.
To begin with, Solana has been concerned about falling volumes since the last week of June. As seen in the accompanying chart, the volume value at press time ($65.95 million) was rather low as compared to its local 20 May peak ($2.06 billion). Only when volumes rise, SOL’s price would get the actual kickstart it requires.
The alt’s volatility too, for that matter, has been a hindrance since mid-June. The same has been inclined more towards the downside. At the time of writing, SOL’s volatility stood at 1.35, while the same reflected a value of 2.6 on the 16th of June.
Now, even though the subscribers on social media platforms have seen an uptick, the alt’s social dominance and social volume have not seen any rise. The not-so-high social sentiment does present a bearish narrative for SOL’s price. The same was evidenced by Santiment’s chart.
However, Solana’s weekly development activity on GitHub has been pretty impressive. In fact, it has given Ethereum a neck-to-neck competition.
As a matter of fact, Solana can be scaled without depending on L2 and sharding. This makes the alt a great option for investors to park their funds in. Additionally, the one-year RoI of Solana has been a whopping 2718.32% while ETH has only been able to fetch 730% returns in the same time frame. At this stage, Solana definitely presents itself as a compelling alternative to invest in when compared to the market’s largest altcoin.