David Pokima
Solana (SOL) has gained momentum this year on the back of institutional inflows into the cryptocurrency market. The rise of the asset has led to bulls projecting more growth for the asset although short traders see an upcoming correction.
On-chain data shows that Solana is up 64.71% this year, a fair figure ahead of many assets as funds flow into its ecosystem. The community dubbed ETH killer has outperformed several assets this year and has moved ahead of the wider market during multiple breakouts this year.
Solana YTD Growth Trumps Ethereum
Solana is up 30.5% in the last 30 days although maintaining parts of gains gotten in previous months. Recently, the fall in the crypto market and declined investor sentiment have wiped out gains recorded in Q4 2023. Solana is down 7% today and trades 75% lower this week at $172.1.
Despite the loss of momentum, SOL’s daily volume is up with $5.2 billion, a 45% increase today. On the other hand, Ethereum trades at $3,270 maintaining its position as the largest altcoin by volume and market capitalization. While indices for Ethereum look higher than Solana, SOL has been confined to outpace the asset from the previous year.
Ethereum is up 43.4% year to date amid bullish sentiment in the market and anticipation for a spot Ethereum ETF in the United States. The altcoin giant is behind Solana in terms of yearly growth due to the latter’s booming ecosystem and the leanings of traditional investors.
Ethereum is down 3.6% in the last 24 hours and 9.06% this week. Although analysts say that Ethereum’s potential lies in its staking feature and ETF, it trails the asset for now.
Why Is SOL Above ETH?
Simply put, the reason for Solana’s run is due to institutional inflows and a surging memecoin ecosystem. Last year, the asset surged over 900% in heightened flows to products and was described as an institutional investor favorite while its rival ETH recorded outflows for several weeks.
Solana’s memecoins remain a bullish factor for the asset with investors pouring assets as the frenzy continues. The market capitalization of Solana memecoins stands at $7.1 billion.
Also Read: How Is The Crypto Market Doing Today?
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