Programmable blockchain Solana’s SOL token rallied to a new high on Friday, replacing the meme-focused cryptocurrency dogecoin as the seventh-largest coin by market value.
SOL climbed 23.11% in the last 24 hours to $143, establishing a foothold above Tuesday’s record of $130, data from coinmarketcap. The cryptocurrency’s market capitalization jumped to $41 billion, surpassing dogecoin’s $39 billion.
Since Solana launched the non-fungible tokens (NFT) project Degenerate Ape Academy on Aug. 15, the SOL token has tripled in price. The timing couldn’t have been better, given the ongoing NFT sugar rush.
“Solana’s popularity, already boosted by Sam Bankman-Fried’s support, has seen unprecedented price action on the back of strong mindshare growth, a flurry of decentralized application launches and, most recently, the frenzy around their Kaiju cards NFT launch,” Jehan Chu, co-founder, and managing partner at Keneti Capital, a blockchain investment and trading firm, told CoinDesk.
Kaiju Cards is a collectibles card game built on Solana’s blockchain and modeled along with classic styles like Yugioh, Pokemon and MTG.
“Kaiju Cards NFTs are serialized, not generative. Think Pokemon or MTG, but with serial numbers on the blockchain,” the official blog says. “Each character is created and hand-drawn by one of our four industry-artists who have done original work for Adult Swim, Apple, Nickelodeon, Netflix, and other places you may recognize. There are 23 original characters contained in the Alpha Series.”
The presale of the Alpha Series aimed at giving early supporters and community members access to cards at a lower price took place on Aug. 20. The final distribution occurred Wednesday and was met with high demand. That may have boosted SOL’s price: The cards were priced at 5 SOL and 8 SOL.
“I believe there were way above 10,000 people online on their Discord,” one trader told CoinDesk in a Discord chat. “But only 3.5k NFT to mint – and only 1 card per wallet was allowed. So yes, demand was more than reasonable.”
Another trader said the latest leg higher in SOL could be related to Friday’s launch of Solsea, the first open NFT marketplace on Solana.
Solana’s ecosystem is booming, and the blockchain has garnered the support of major investors, thanks to its perceived scalability, relatively low transaction costs and fast processing speed.
Still, SOL now looks overbought with the 14-day relative strength index (RSI) hovering well above 70, indicating the pace of the rally may slow. “With volatility, this high, SOL calls might be a decent sell,” QCP Capital said in its latest market analysis. Investors typically sell calls when the asset is expected to consolidate or move lower. Traders sell options when volatility is expected to drop. That’s because volatility has a positive impact on options’ prices.
Bitcoin Bulls Run Amok: Short Traders Hit with $90 Million Loss Amidst Unstoppable Surge
The relentless surge in Bitcoin’s prices has left short traders reeling as highly leveraged futures bets against the cryptocurrency incurred losses totaling $90 million on Tuesday alone.
This follows an additional $70 million in short liquidations on Monday, contributing to Bitcoin’s remarkable climb from $39,000 to $44,000 this week.
According to data from CoinGlass, most of these liquidations transpired on major crypto exchanges, including Binance, OKX, and Huobi.
The substantial liquidation figures have the potential to signal either a local top or bottom in a significant price movement, providing valuable insights for traders looking to strategically position themselves.
The surge in trading volumes, up by 25% in the past week, coupled with the growth in open interest from $17.2 billion to $20.2 billion since the beginning of December, underlines the increased market activity around Bitcoin.
Several factors are contributing to Bitcoin’s recent growth. Optimism is swirling around the potential approval of a spot exchange-traded fund (ETF) in the U.S., with traders factoring in anticipated rate cuts, buoying riskier assets like technology stocks and Bitcoin.
Additionally, the possibility of sovereign adoption is gaining traction as leaders in major economies express a Bitcoin-friendly stance.
Over the weekend, a notable group of traders committed to a $200 million BTC futures position, emphasizing the sustained demand for exposure to Bitcoin.
Amid continuous updates and changes in spot ETF applications, some industry observers foresee Bitcoin prices surpassing the $48,000 level in the coming weeks, further intensifying the cryptocurrency’s bullish momentum.
Dogecoin (DOGE) Rides Bitcoin Surge, Gains Over 10% in 24 Hours
The cryptocurrency market is witnessing a resurgence of risk appetite as more investors jump on unconventional choices such as Dogecoin (DOGE), Shibacoin, Memeland, etc.
In the past 24 hours alone, DOGE has surged by over 10% to $0.10 a coin for the first time since April following Bitcoin’s climb from $38,000 to $44,000.
This surge, coupled with the rising price, validates the upward trajectory of DOGE, signaling growing investor interest.
Funding rates on various exchanges have also experienced a substantial surge, hitting an annualized 50% or more.
These rates, reflecting a steep premium in perpetual futures relative to spot prices, indicate a prevalent bullish sentiment among investors.
It underscores their collective optimism, suggesting a belief that prices are poised for further upward momentum.
Joke cryptocurrencies like DOGE have historically exhibited high-beta characteristics, closely mirroring Bitcoin’s movements but often with greater intensity.
Investors are advised to exercise caution and monitor DOGE’s potential for extreme bullish action relative to Bitcoin, serving as a potential indicator of speculative exuberance typically observed in the latter stages of a widespread bullish trend.
Terra Ecosystem Tokens Surge Over 300% Weekly Gains in Remarkable Reversal
Business3 weeks ago
Nigeria’s Logistics Sector Holds Untapped N3tn Potential, Says Courier and Logistics Management Institute
Black Market Rate4 weeks ago
Black Market Exchange Rate Today 14th November 2023
News4 weeks ago
Millionaire Powerplay Limited Unveils Unprecedented Odds in American Lotto’s Instant Cashless Payout
Forex3 weeks ago
Black Market Exchange Rate Today 16th November 2023
Forex4 weeks ago
Black Market Exchange Rate Today 10th November 2023
Black Market Rate3 weeks ago
Black Market Exchange Rate Today 21st November 2023
Telecommunications3 weeks ago
Airtel Africa Announces Interim Dividend Amidst Robust Half-Year Performance
Naira4 weeks ago
N-Power Dismisses Fake Recruitment Reports, Highlights Ongoing Payment Resolutions