Profit taking in the crypto market. Compared to yesterday’s trading day, there is little movement in play today – with the exception of Solana.
There have to be days like this. After printing green numbers across the board yesterday, Thursday, September 2, the crypto market is stagnant today in crypto land. Bitcoin (BTC), for example, is trading at $49,682, just a hair above its 24-hour benchmark. Ether (ETH) is still 1.1 percent above the previous day’s level at 3,803 US dollars.
Altcoins such as Cardano (ADA) (minus 2.5 percent), Binance Coin (BNB) (minus 1 percent) and Dogecoin (DOGE) (minus 1.3 percent) have suffered losses. Here, investors:inside could not refrain from profit-taking.
Despite all this: the overall market is currently valued at 2.3 trillion US dollars – an increase of 1.2 percent. The picture for Bitcoin in the medium term is correspondingly bullish:
If Bitcoin manages to rise to and break through USD 51,307, price targets in the USD 53,005 range and above will come into view,
writes Stefan Luebeck in his Bitcoin analysis on Yellow Rocket Agency.
Solana enthusiasts rejoice
However, there is one clear daily winner to report: We’re talking about Solana (SOL). The smart contract platform has had an impressive rally this month. On a weekly basis, it is up 80.6 percent. Within the last 30 days, it was even almost 300 percent.
Even Dogecoin can’t keep up with that: The Memecoin had to give up seventh place on the list of top coins to Solana.
Some market observers could already see the first signs of an Ethereum replacement in the fairytale rise of the proof-of-stake coin SOL. After all, as a smart contract platform, the Solana blockchain serves a similar use case. And indeed, in the wake of the sustained clogging of the ETH blockchain by the immense demand for DeFi applications and NFT, competitors like Solana are increasingly coming into the focus of investors:inside. This is because lower network utilization also means lower fee levels.
It is therefore no surprise that the “Total Value Locked”, i.e. the accumulated capital in DeFi applications on Solana, only knows one direction these days: north.
But for all the bullish momentum, $3.86 billion in DeFi minutes is just a drop in the bucket.s a hot potato. Ethereum, the top dog, still accounts for the lion’s share of decentralized financial protocols with 127 billion US dollars. When making an investment decision, investors should bear in mind that Solana is still far from outstripping Ethereum. In any case, 300 percent growth in one month is not covered by the fundamentals; in the end, the price increase – as is so often the case in the crypto market – is likely to be primarily due to one factor: speculation.