The past 12 hours have been a mind-boggling one for crypto market bulls as massive liquidations struck the digital currency ecosystem. According to data from Bybt, a total of over 364,00 traders have been liquidated in the past 24 hours with more than $3.41 billion worth of trades liquidated in the past 24 hours. As usual, Bitcoin received the biggest thumping with over 28.37k BTC units liquidated, amounting to a valuation of $1.33 billion.
Altcoins including Ethereum (ETH) and Solana (SOL) were not also spared from the painful bear-fueled liquidation. While the former recorded liquidations worth approximately 257.15K ETH (or $884.96M), a record of 334.32K SOL totaling $57.04 million was also liquidated.
General Price Slump: Solana Standing Strong
The price action on various digital currencies has been on the negative side as the flash crash ushered in a bearish ripple effect into the market. At the time of writing, Bitcoin has retracted back to a weekly low of $43,285.21 and is currently trading at $46,909.75, down 9.37% in the past 24 hours.
Ethereum is changing hands at $3,441.40 atop a 12.71% slump. The two top coins, Cardano (ADA), and Binance Coin (BNB) also shed off 15.33%, and 16.04% of their prices to $2.41 and $418 respectively. Amongst the top digital currencies, Solana comes off as the most resistant to the ongoing price action, coasting at a price of $177.05 with a gain of 8.51% to maintain its steady uptrend since the past week.
At present valuation, Solana now ranks as the 7th largest digital currency with a $51.2 billion market capitalization. The coin is 10% below its all-time high (ATH) price of $194.82 attained about 13 hours ago.
Effect of Functional Ecosystem
The stability and resilience of the Solana token amidst the massive price dip can be attributed to the quality of decentralized finance (DeFi), and Non-Fungible Token (NFT) protocols making the blockchain their home. With new projects being launched, the demand for the SOL token is on the rise, and thus, counterbalancing the effects of the sell-offs.
Solana price positioned for new bull rally towards $275
- Solana price breaks out above bull flag, indicating uptrend continuation.
- Moving and holding above $220 is essential to continue bullish momentum.
- Failure to extend higher here could see new monthly lows.
Solana price has hugged the top of the Cloud (Senkou Span A) as its primary support level for the past week. The respect of Senkou Span A as support has resulted in Solana moving and closing above one of the two Ichimoku levels necessary to confirm a new uptrend.
Solana price must close above the $220 value area before testing $275
Solana price is up against its primary and final Ichimoku resistance level on the daily Ichimoku chart. The Kijun-Sen within the Ichimoku system represents medium-term support and resistance and is the primary level for intraday and intraweek trading strategies within the Ichimoku system. The Kijun-Sen at the $220 level is precisely where Solana finds itself pushing against.
A daily close of Solana price above $220 provides more protection from near-term downside movement than it does upside potential for a couple of reasons. First, a close above the Kijun-Sen would convert the Kijun-Sen from a resistance level to support. Second, because retests of breakouts from bull flags are extremely common, the combination of the Kijun-Sen and top of the bull flag create a double-support structure.
SOL/USDT Daily Ichimoku Chart
Solana price does have downside risks. The Composite Index has created a high above the previous high peak on November 21st, while the candlestick chart shows the current daily high is lower than the November 21st high. This creates a condition known as hidden bearish divergence – a warning that the current drive higher may fail.
It is essential that Solana price close above the November 21st open of $217, or the hidden bearish divergence may push Solana back into the bull flag and likely even lower to test the bottom of the Cloud (Senkou Span B) at $184.
Will Solana [SOL] give Ethereum [ETH] a run for the money?
Solana is showing a promising situation in terms of attracting more projects, and it seems the battle with Ethereum continues strongly. There are many projects announcing every day about migration from Ethereum to the Solana network.
It seems the gas price and scalability features of the latter are attracting them significantly. Although Ethereum itself is in a good position because of various sectors like DeFi, NFT, and metaverse running on it, Solana has been successful in hosting more projects and may give Ethereum a run for the money.
One of the latest projects announcing a migration to Ethereum is Crowny. Crowny is a platform that connects users to their loved brands. It rewards users for engaging with their lived brands and is growing fast in terms of attracting users. According to the latest announcement on Twitter, the platform is set to migrate from Ethereum to Solana on December 8th. The real reason behind this migration is lower costs per transaction on Solana compared to Ethereum.
Besides, the scalability features let Crowny and Raydium grow faster and attract more users. According to the announcement, the Crowny team believes in Solana’s various features:
“Solana blockchain offers extremely low costs per transaction and ensures limitless scalability for years to come. This cutting-edge architecture is all about speed. It’s the fastest blockchain around. As hardware improves, so does the network.”
Another good news for the Solana community comes from the famous decentralized web browser Brave. Brave browser announced some days ago that it partners with Solana to integrate that blockchain into the browser and make it the default for dApp support. It’s great news for Solana because Brave is currently one of the most famous browsers in the market. It can benefit developers on Solana who can provide their dApps to a bugger user-base in this scenario.
Brave has 42 million monthly active users and 1.3 million verified creators. The reason for choosing Solana is the same as Crowny. Lower transaction fees and supporting fast Web3 applications are great benefits of this blockchain. Brendan Eich, CEO, and co-founder of Brave said:
“With more and more users and creators requiring tools for fast and affordable access to the decentralized Web, this integration will seamlessly pave the way for the next billion crypto users to harness applications and tokens.”
More users and projects on Solana means more opportunities for growth in this ecosystem. When the migrations from Ethereum to Solana grow, it shows great benefits in the competition that can even result in higher deployments and higher prices for the SOL token.
This is causing users to choose Solana over Ethereum
Ethereum’s gas fees and speeds are costing not just users, but the ecosystem itself as more and more players are migrating to rival blockchains.
The latest stakeholder to make the move is Crowny – an app rewarding shoppers for various interactions with brands. The date for its migration to Solana is slated for 8 December.
The date for the Migration to @Solana is set!🚀
December 8th is when Crowny and @RaydiumProtocol make it happen, more details will follow!🔥 pic.twitter.com/Wzog22VoNc— Crowny 🔗 Our Beta App Is Live (@crownyio) November 29, 2021
In a Twitter thread, Crowny stated,
“Solana blockchain offers extremely low costs per transaction and ensures limitless scalability for years to come. This cutting edge architecture is all about speed. It’s the fastest blockchain around. As hardware improves, so does the network.”
Moving day is here
Choosing Solana over Ethereum isn’t a novel incident. In July 2021, Powerledger, an Australian company in the area of technology and energy, decided to move its platform from Ethereum to Solana.
Co-founder and executive chairman Dr. Jemma Green had commented,
“Our new blockchain platform based on Solana will be tens of thousands of times faster than Ethereum but also energy efficient. As we started this project to allow renewables to be scaled, part of our mission is to be light on our own carbon footprint.”
Another example is the privacy-protecting Internet browser Brave. The company announced a partnership with Solana at the Breakpoint Lisbon event in Portugal. Brave’s official release stated,
“High transaction fees seen on Ethereum (due to increased interest in crypto and DeFi) have held some users back from transacting. Solana is the fastest blockchain in the world and provides the opportunity to scale blockchain transactions for as little as $0.001 – $0.002 USD per transaction, providing significant cost savings for users.”
Furthermore, the Brave crypto wallet is set to integrate Solana in 2022, for decentralized app support.
Looking at these migrations and the reasons for the same, it appears that speed, fees, and energy efficiency are thorns on Ethereum’s side.
Time to pull out the roadmap
Needless to say, there’s a lot of pressure to bring Ethereum up to speed – literally. At the last All Core Devs meeting, Ethereum developers discussed diverse proposals to reduce transaction fees, which are also rising in rollups.
Developer Tim Beiko also noted that time was of the essence. He claimed that the proposals needed to ship before a fork in February.