Solana (SOL) has gone up by 1% in the past 24 hours as the crypto market has bounced strongly off key levels today.
Other top utility tokens like Ethereum (ETH) and Cardano (ADA) have booked similar gains of 4.4% and 3.3% respectively during this same period. Meanwhile, trading volumes are relatively unchanged despite the market’s good mood.
The Solana ecosystem has been expanding rapidly in the past couple of years as the rise of meme coins has driven significant transaction volumes to the network while decentralized applications (dApps) like Raydium, Jupiter, Jito, and Pump.fun have also attracted both money and attention to the blockchain.
Solana is currently one of the strongest contenders to Ethereum, although its total value locked (TVL) is still only a fraction of the latter’s.
Data from DeFi Llama shows that investors have locked up $6.72 billion worth of digital assets in this network compared to $50.7 billion that Ethereum boasts.
However, dApps within the Solana blockchain have managed to generate higher fees compared to its Ethereum-based peers. This indicates that competition is heating up among the two leading smart contracts platforms as developers may continue to migrate their applications to Solana as it offers lower transaction fees and faster execution speeds.
For now, Ethereum’s main edge against Solana is decentralization, as the former has a larger validator pool whose individual stake in the network is quite low.
Solana’s Bounce Off This Fibonacci Level Could Push It to a Fresh ATH
Solana’s rise to the top as a so-called “Ethereum-killer” has pushed its price two times near the $300 level. In January this year, after President Donald Trump selected Solana to launch his widely-awaited official meme coin, Official Trump (TRUMP), the price rose to an all-time high of $295.31 per coin.
However, it collapsed right after and a double-top pattern formed as a result of this drop. Using this resistance as the top of a Fibonacci retracement, the Solana weekly chart shows that the price action is already tagging a key area from which SOL could bounce strongly if bulls take control of the market.
The 61.8% Fibonacci retracement level is typically considered by traders an area of high value as a bounce above this level offers significant upside potential and a high risk-reward ratio.
Momentum indicators are still in bearish territory as the Relative Strength Index (RSI) currently stands below the signal line, but the MACD’s histogram shows that negative momentum is decelerating.
If the price bounces off this level, as it has happened multiple times in the past for SOL, it could lead to a spike above the $300 level over the next few months, as successful bounces off key retracement levels commonly produce fresh all-time highs.
Meanwhile, as the Solana ecosystem continues to grow rapidly to challenge Ethereum’s dominance, scaling protocols like Solaxy (SOLX) will be needed to ensure the network’s efficiency during peak usage times.
Solaxy (SOLX) Strengthens Solana’s Ecosystem by Increasing the Mainnet’s Efficiency
Solaxy (SOLX) is a layer-two scaling protocol for Solana that seeks to alleviate the mainnet’s burden by bundling transactions offline.
The launch of TRUMP highlighted the importance of this kind of protocol as both users and exchanges experienced transaction delays and errors.
The developing team behind Solaxy has shared multiple encouraging news about its progress. They have successfully tested asset transfers on the Solana devnet and have been engaging in negotiations with top wallet providers and exchanges to foster the adoption of Solaxy.
At its discounted presale price of $0.001682, analysts agree that $SOLX could deliver high returns once it is listed on exchanges and the crypto community starts to use the protocol.
In addition, for those who are willing to secure the network by staking their tokens, the project currently offers a 142% annual percentage yield (APYs). These rewards will be distributed once the presale event ends.
To buy $SOLX, simply head to the Solaxy website and connect your wallet. You can either swap SOL, USDT, or ETH for this token or use a bank card to make your investment.
