Solana Shoots Up While Larger Marketcap Bitcoin, Ethereum Drop — What Is The Possible Reason?


Solana SOL/USD 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 BTC/USD and Ethereum ETH/USD 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.

See Also: Trump Reportedly Discussing Participation In Bitcoin 2024 Conference, Move To Reinforce ‘Crypto President’ Image?

While not conclusive, the uptick could be attributed to the launch of Wrapped Bitcoin WBTC/USD 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

.Read Next: Floki, Dogwifhat, Bonk Record Double-Digit Gains — Dogecoin, Shiba Inu Also Shrug Off Broader Market Bloodbath

Market News and Data brought to you by Benzinga APIs
Posted In: CryptocurrencyNewsMarketsMoversSolSolanaWormholeWrapped Bitcoin
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!