Bitrabo Editorial
Solana, along with major cryptocurrencies like Ethereum and Bitcoin, has been facing challenges in the market. Prices have been declining since June 6, reflecting the dominance of sellers in the market since late May 2024.
Potential for Continued Uptrend in Solana
Despite the current market conditions, some analysts are optimistic, anticipating a recovery in altcoins in the upcoming sessions. Particularly, they believe that Solana, ranked among the top 5 cryptocurrencies, could lead the next market cycle.
In a recent analysis, a market expert noted that as long as the bulls sustain the current uptrend and prevent further declines, Solana (SOL) is likely to see continued growth.
This upward trajectory has been observed since the latter part of 2023 when Solana surged to prominence as one of the best-performing cryptocurrencies, surpassing even Bitcoin. Despite some retracement from the peak of $210 in March 2024, the overall uptrend has persisted, with SOL currently down 25% from its recent highs.
However, maintaining prices above the $160 mark amidst selling pressure will be crucial for the bulls to stay in control and resist a significant downturn.
While technical indicators support a bullish outlook, there are also positive developments on the fundamental side.
Solana’s Rising Adoption Amid Regulatory Concerns
Financial institutions are increasingly integrating Solana into their operations to cater to evolving customer demands. Notable supporters of Solana include PayPal, Visa, and Stripe.
Solana’s appeal lies in its ability to facilitate faster and more cost-effective transactions, boasting a potential throughput of up to 65,000 transactions per second, far surpassing Ethereum’s capacity of 15 transactions per second.
On the other hand, Ethereum’s network limitations have led to high transaction fees, at times exceeding $50 due to congestion levels.
While Solana is gaining traction among institutions and token issuers, regulatory challenges loom. The United States Securities and Exchange Commission (SEC) has raised concerns about Solana potentially being classified as an unregistered security.
Moreover, unlike Bitcoin and Ethereum, SOL does not have a well-established futures market on the CME exchange. This could impact the approval timeline for a Solana-based exchange-traded fund (ETF), causing delays in its launch.