Solana Shoots Up While Larger Marketcap Bitcoin, Ethereum Drop — What Is The Possible Reason?
By Benzinga
Solana (CRYPTO: SOL) defied the slump in blue-chip currencies to emerge as the best-performing large-cap cryptocurrency in the last 24 hours.
What Happened: The fifth-largest coin by market valuation jumped more than 8% on a day where Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) bled significantly.
SOL’s trading volume surged 156% to $3.5 billion, catapulting it to become the third-most traded cryptocurrency (barring stablecoins) in the last 24 hours. The rally helped to offset losses encountered over the previous week.
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While not conclusive, the uptick could be attributed to the launch of Wrapped Bitcoin (CRYPTO: WBTC) on Solana, as confirmed by Wormhole in an X post.
For the curious, Wormhole is a communication bridge between Solana and other blockchain networks, facilitating the transfer of tokens and NFTs. WBTC is a tokenized version of Bitcoin, aimed at bringing the coin into decentralized finance through an ERC-20 token.
Why It Matters: Solana’s relief rally comes amid predictions of an altcoin market recovery.
Michaël van de Poppe, a popular cryptocurrency trader and analyst, believes altcoins may have reached a ‘possible bottom’ as they bounced during what he thinks is the final stage of the market’s corrective phase.
The widely-followed trader had earlier revealed that he was well-positioned for an altcoin rally and anticipated big capital rotation in the next few weeks.
Price Action: At the time of writing, SOL was exchanging hands at $136.22, surging 8.08% in the last 24 hours, according to data from Benzinga Pro
