Solana Positioned for a Bullish Rally Amidst Crypto Market Surge

Solana Positioned for a Bullish Rally Amidst Crypto Market Surge

Independent Analyst’s Bullish View on Solana

Independent market analyst Hansolar suggests that Solana is poised for a bull run within the current crypto market surge, primarily influenced by the performance of Bitcoin. Hansolar draws parallels between Solana and Ethereum’s historical price trends during previous bullish cycles in the crypto market.

During the 2020-2021 rise cycle, Ethereum experienced a significant surge, climbing from around $85 to $4,935, closely following Bitcoin’s upward trajectory.

Solana Aiming for a $600 Target

Examining the three-day chart below, it is evident that after Bitcoin surpassed $20,000, Ethereum’s bullish trend saw a remarkable increase of approximately 1,400%. Hansolar speculates that a similar fractal pattern might unfold in 2024 if Bitcoin maintains a prolonged bull run beyond its November 2021 record level of $69,000.

Hansolar notes, “Previously, Ethereum surged when Bitcoin really hit ATH levels. That’s when individual investors buy SOL. Currently, SOL is about 50% off its ATH levels, similar to Ethereum being around 50% during Bitcoin’s previous ATH cycle.”

Furthermore, if Bitcoin reaches the projected $150,000 valuation, as suggested by Fundstrat Research Chairman Tom Lee based on ETF approval expectations, Solana could set a long-term target of $600. This target represents a substantial 450% increase from the current SOL price.

Strong Interest in the Solana Ecosystem

Fundamentally, Solana has demonstrated strong performance in terms of network adoption, with the total value locked in its ecosystem reaching the highest level since January 2023, at 20.51 million SOL.

This increasing total value locked (TVL) is theoretically linked to the potential scarcity effect, as more assets are locked into DeFi platforms. The decrease in circulating supply could contribute to an increase in demand relative to supply, potentially driving up the price of locked tokens.

Solana’s rising TVL is accompanied by continuous quarter-over-quarter (QoQ) growth, as indicated by data platform Messari. In the 4th quarter of 2023, the network witnessed a 103% increase in average daily fee payers, a 961% surge in average daily DEX volume, and a remarkable 359% increase in average daily NFT volume.

In the first quarter of 2024, the airdrop event of Jupiter DEX’s native token JUP contributed to increased activity on the Solana blockchain network. Additionally, strong demand for SOL tokens is highlighted by NFT volumes approaching $5 billion.

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