The interest from institutional investors could be behind the 494% growth of SOL in recent months. The increase in its market capitalization suggests that the cryptocurrency might become the next rival for ADA.
The value of Solana (SOL) has been facing resistance near its latest all-time high. However, its ecosystem of decentralized finance ecosystem and non-fungible tokens has had rapid growth. For that reason, the cryptocurrency could break the USD 250 barrier by the end of the year.
Solana is trading at around USD 197, and its daily trading volume is above USD 1.9 billion, according to CoinGecko.
The interest from institutional investors in SOL could be another crucial factor behind its significant 494% growth in recent months. For example, the cryptocurrency is the fourth biggest component of the Bitwise 10 Crypto Index Fund.
Besides, the current number of tweets that mention the SOL cryptocurrency has been 32% higher than the average in the last month. As Solana continues to grow, it will continue to be an alternative for DeFi and NFT apps.
The increase in the market capitalization of SOL has allowed the crypto asset to outperform XRP. Solana recently occupies the 6th position in the cryptocurrency ranking with a volume of approximately USD 59.3 million. Therefore, that suggests that the cryptocurrency might become the next rival for Cardano (ADA).
The TVL of Solana Reaches an All-Time High
The Total Value Locked on Deposits of DeFi projects built on the Solana network reached a new record of USD 13.3 billion. That happened at the same time as the price of SOL increased.
The largest DeFi project on the Solana network, Saber (SBR), is an automated market maker (AMM) protocol. It allows users to trade between stable pairs of assets on the platform.
Meanwhile, there are four DeFi projects whose TVL is above USD 1 billion. They include Raydium (USD 1.84 billion), Sunny (USD 1.67), Serum (USD 1.57), and Marinade Finance (USD 1.55).
Cardano Fails to Regain Its Bullish Trend
The price of Cardano remained locked in a big sideways move above USD 2.08 and resistance at USD 3.03. After that, it lost the immediate support level and dropped to USD 1.90.
ADA is trading at around USD 1,99 and has lost 7.8% in the last week, according to CoinGecko. Its market capitalization is approximately USD 63.955 million, which places it in the 5th position in the cryptocurrency ranking.
Technical Analysis of the Price of ADA
The daily Cardano candlestick chart shows how the price recently plummeted, while the market had its eyes on Shiba Inu. However, ADA reached support at USD 1.90 and now exhibits a good recovery.
In contrast to other altcoins, Cardano had not made any significant profits recently. Its price remained locked on a broad sideways move after experiencing a dominant bullish force. For that reason, it seemed that resistance would soon break it.
Solana and Cardano occupy the 6th and 5th position in the cryptocurrency ranking, respectively. The former has been gaining popularity in recent weeks, which might lead it to outpace the performance of ADA.
By Willmen Blanco
