Profit-taking in the crypto market. Compared to yesterday’s trading day, there is little movement in the game today – with the exception of Solana.
There must be days like that too. After the crypto market printed green numbers across the board on Thursday, September 2nd, it is stagnating in crypto land today. Bitcoin (BTC), for example, is trading at 49,682 US dollars, only a hairpin above the 24-hour comparison value. At 3,803 US dollars, Ether (ETH) is 1.1 percent above the previous day’s level.
Altcoins such as Cardano (ADA) (minus 2.5 percent) have to accept losses, Binance Coin (BNB) (minus 1 percent) and Dogecoin (DOGE) (minus 1.3 percent). Here investors could not do without profit-taking.
Despite everything: 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 USD 51,307 and break through it, price targets in the area of USD 53,005 and above come into focus,
writes Stefan Lübeck in his bitcoin analysis on BTC-ECHO.
Solana enthusiasts rejoice
However, there is one clear winner of the day to report: We are talking about Solana (SOL). The smart contract platform has had an impressive rally this month. On a weekly basis, there is an increase of 80.6 percent. Within the last 30 days it was even just under 300 percent.
Even Dogecoin cannot keep up: The Memecoin had to give up seventh place on the list of the top coins to Solana.
Some market observers could see the first signs of a replacement of Ethereum in the fairytale rise of the proof-of-stake coin SOL. Finally, the Solana blockchain serves a similar use case as a smart contract platform. And indeed: In the course of the ongoing clogging of the ETH blockchain due to the immense demand for DeFi applications and NFT, investors such as Solana are increasingly coming into the focus of investors. Because a lower utilization of the network also means a lower level of fees.
So it’s not surprising that the “Total Value Locked”, i.e. the accumulated capital in DeFi applications on Solana, only knows one direction these days: north.
But despite all the bullish momentum, $ 3.86 billion in DeFi protocols is just a drop in the ocean. Because top dog Ethereum still accounts for the lion’s share of decentralized financial protocols with 127 billion US dollars. When making an investment decision, investors should take into account that Solana is still a long way from overtaking 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 primarily due to one factor: speculation.