Solana battles Cardano for top 5 spot as SOL market capitalization surpasses $ 70 billion

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The Solana (SOL) autumn rally continued on November 3rd, with price and market capitalization hitting new record highs.

SOL rose 7% to $ 236 in the past 24 hours, increasing its market cap to over $ 70 billion for the first time in history. When the token wobbled near its record high, it briefly flipped Cardano (ADA) and became the fifth most valuable crypto asset in the world.

Currently, SOL’s market cap was around $ 69.37 billion, just $ 500 below ADA’s market valuation of $ 69.87 billion.

Top ten cryptocurrencies by market capitalization (as of 1230 UTC, November 3rd). Source: Messari

Solana collects on NFT madness

Solana’s battle for the top five cryptocurrency space followed SOL’s renewed upward strength in the fourth and final quarter of 2021. For example, the Solana blockchain’s native token has grown by over 65% since October 1st, on the other hand, ADA’s return was in the same period only 2.13%.

ADA performed below average primarily because of the “sell-the-news” sentiment. As Cointelegraph reported, the Cardano token began to decline immediately after the introduction of its long-awaited smart contracts functionality via a so-called Alonzo upgrade on September 13th.

ADA / USDT three-day price chart. Source: TradingView

In the days leading up to the hard fork, ADA’s best year-to-date returns were around 1,630%. At the time of going to press, they were around 1,050%. By comparison, SOL’s YTD returns were over 12,700% at the time of this writing.

Independent market analyst Pentoshi cited the increasing number of non-fungible token (NFT) projects on Solana as one of the main reasons for the price boom and recalled an August 16 tweet that accurately predicted a bull run for the token.

Similarly, Solana secondary NFT sales hit half a billion dollars in three months

Messaris researcher Mayson Nystrom also noted “tremendous growth” in NFTs in the Solana ecosystem, noting that the blockchain has processed a total of $ 500 million in NFT secondary sales since April 2021. Excerpts:

“Whether or not Solana can convert this initial energy into long-term NFT growth remains to be determined, but the current signs offer compelling reasons to be optimistic about Solana’s burgeoning NFT ecosystem.”

Solana vs. Ethereum NFT Statistics. Messari

Will SOL hit $ 275 next?

SOL’s recent surge to its all-time high also came as a breakout of its Bullish Pennant structure, as shown in the chart below.

SOL / USDT daily price chart with Bullish Pennant setup. Source: TradingView

Bullish pennants appear when price consolidates in a triangle-like structure after experiencing a sharp upward move known as the flagpole. Traders typically wait for the price to cross the top trendline of the triangle before setting their profit target to a length equal to the height of the flagpole.

Solana’s flagpole height is roughly $ 175. As a result, its breakout move from the triangle’s resistance trendline (~ $ 158) causes SOL to grow further at $ 175, setting its profit target above $ 275.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every step of investing and trading involves risk, so you should do your own research when making a decision.