Solana Showing Signs?
For the first time since April, Solana may be on a legitimate run that can't be ignored. The latest price burst, which has occurred just in the past 2 hours, has now propelled the 9th ranked market cap crypto asset to a +35% gain in the past 3 weeks.
But what is causing it? Are the mid-June ETF's creating extra exposure for the asset that was once valued at over $252 per coin in November, 2021? It doesn't look like there are any particular ETF's that are focusing on SOL.
Flipside Crypto recently did a study to show just how speculative each Solana NFT community is.
And as far as NFT's go overall, the amount of trades happening in the NFT ecosystem is far from showing anything special at the moment.
The best culprit we may be able to identify is the increase in Solana social volume earlier today on Reddit. It did appear to coincide with the mild push in price that occurred directly after this post was made, discussing the fact that the asset is "still standing".
Trading volume certainly isn't showing any signs of an increase yet, but a bit of a climb could definitely help give the price jump a bit of a momentum boost.
As we can see from Solana's funding rate on Binance and DyDx, the ideal time to buy in would have been when we saw these ultra short funding rate spikes happening in the second week of June. Prices can still keep climbing without the aid of shorts being liquidated, but the probabilities are certainly lowered.
We can also tell by the decline in social dominance that Solana's social dominance has just continued to decline since the beginning of the year.
Solana, for those who remember, was also a leader in Santiment's development activity metric in 2021 and 2022. But things quickly changed when this article was released last August, claiming that its high github activity was being artificially inflated.
At least we can say that there is still legitimate activity going on, albeit at a far reduced rate compared to what we used to see.
Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.
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