Solana vies with Cardano for a place in the “Top 5” while SOL’s market capitalization surpasses $ 70 billion

The Solana (SOL) autumn rally continued on November 3, with the price and market cap hitting a new record.

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

For now, SOL’s market capitalization was approximately $ 69.37 billion, just $ 500 below ADA’s $ 69.87 billion market valuation.

The top ten cryptocurrencies by market capitalization (as of 12:30 UTC, November 3rd). Source: Messari

Solana recovers in the midst of the NFT frenzy

Solana vies with Cardano for a place in the “Top 5” while SOL’s market capitalization surpasses $ 70 billion
Solana vies with Cardano for a place in the “Top 5” while SOL’s market capitalization surpasses $ 70 billion

Solana’s fight for the five best cryptocurrency places followed SOL’s renewed upward movement in the fourth and final quarter of 2021. For example Solana’s native blockchain token has grown more than 65% since October 1st. On the flip side, the ADA return was only 2.13% over the same period.

ADA performed below average primarily because of the sentimentality “Sell the News”. As Cointelegraph reported, Cardano’s token began to decline right after it rolled out its long-awaited smart contracts functionality via the so-called Alonzo update on September 13th.

Three day ADA / USDT 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 are around 1,050%. In contrast, SOL’s previous returns have been over 12,700% at press time.

Independent market analyst Pentoshi cited the growing number of non-fungible token (NFT) projects in Solana as one of the main reasons behind the price boom, recalling an August 16 tweet that accurately predicted an upward trend for the token.

$ Sol has surpassed $ Ada to take position 3

Balance was restored in the world

The endless summer of #solana

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

“Whether or not Solana will be able to manifest this initial energy in 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 later?

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

SOL / USDT daily price chart with bullish flag setup. Source: TradingView

Bullish flags appear when price consolidates into a triangle-like structure after registering a strong bullish move known as the flagpole. Traders often wait for the price to cross the top trendline of the triangle before setting their profit target at a length equal to the height of the flagpole.

Solana’s flagpole height is approximately $ 175. As a result, its breakout move from the triangular resistance trendline (~ $ 158) causes SOL to grow another $ 175, putting 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 investment and trade move involves risk, you must conduct your own investigation when making a decision.

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