After it skyrocketed, SOL entered the TOP-10 in terms of capitalization according to Coinmarketcap.
It has been noticed that in the last week the market is growing not due to bitcoin, but to altcoins. Bitcoin Dominance has been decreasing for some time and is already about 43%. The share of Ethereum is also not growing and has stopped at less than 19%. At the same time, the total capitalization of the cryptocurrency market exceeded $2 trillion and grew by almost 60% over the month. Obviously, the market is growing at the expense of altcoins. But analysts clarify: not just due to altcoins, but to decentralized finance (DeFi).
In the last week alone, three DeFi-related altcoins have surged more than 1.5 times, Ravencoin (RVN), Solana (SOL), and Terra (LUNA). Analysts attribute this to the impact of the pandemic. The new wave of COVID-19 stimulates the inflow of funds in cryptocurrencies, since neither fiat currencies, nor commodities, nor stocks give investors the opportunity to earn money.
When Solana Labs, the developer of the Solana network, announced a private token sale a week ago, several major funds responded, including Andreessen Horowitz, Polychain Capital, Alameda Research, CMS Holdings, CoinShares, Jump Trading, Multicoin Capital, Sino Global Capital. Solana attracts institutionalists with its functionality. This platform for supporting scalable applications has a throughput of more than 50K operations per second.
The token sale was made to back the expansion of the Solana ecosystem, on the blockchain of which the Mango Markets decentralized exchange is launched. Mango is a platform for spot markets, lending, and perpetual futures. Meanwhile, it receives liquidity both from its own pools and from Serum, another exchange on the Solana blockchain. This model looks like other successful exchanges like Uniswap and SushiSwap. But Mango is at the beginning of the road, so investing in it can give a big profit, with the Xs that attract investors so much.
In addition, Solana Labs increased the functionality of its blockchain through an update launching the Wormhole protocol. The new protocol enables Solana to connect with other leading DeFi projects including Terra, Ethereum, and Binance Smart Chain.
Optimists believe that the upside potential of SOL due to such important fundamental factors has not yet been exhausted. SOL may grow another 1.5-2 times and outperform Dogecoin (DOGE) in terms of capitalization. DOGE grew by more than 25% in a week due to another verbal intervention by Elon Musk. Analysts do not consider this rising to be organic and expect the favorite cryptocurrency of Musk to collapse. However, there is a risk that SOL is already overbought a little bit and will be corrected within 30-40%.