Top Reason behind Solana (SOL) Price Rally Today

Coinspeaker
Top Reason behind Solana (SOL) Price Rally Today

Amid the broader market recovery and Bitcoin BTC $64 313 24h volatility: -1.9% Market cap: $1.27 T Vol. 24h: $21.65 B crossing $65,000, Ethereum Layer-1 competitor Solana SOL $156.3 24h volatility: 0.5% Market cap: $73.27 B Vol. 24h: $2.57 B price is also making silent moves gaining over 4% and trading close to $158 levels.

In addition to the broader market rally supporting the SOL price surge, it’s driven largely by the global rate cuts and the loosening liquidity conditions in the market. In its recent report, VanEck’s market research firm MarketVector noted that SOL can reach 50% of ETH’s market cap. This means that the SOL price can at least double from the current levels reaching over $320 levels.

VanEck puts some plausible explanations for this assumption citing Solana’s superior transaction speed and processing capabilities which could be the biggest catalyst behind its bullish outlook. As we know, the Solana blockchain can handle thousands of transactions per second (TPS), nearly 3000% more than that of Ethereum ETH $2 633 24h volatility: -0.3% Market cap: $316.44 B Vol. 24h: $12.68 B .

Courtesy: Solana Compass

Solana’s daily active users surpass Ethereum by 1,300%, and its transaction fees are nearly 5 million percent lower. According to VanEck, this makes Solana highly attractive for high-volume transactions, particularly in sectors like payments and remittances where speed and cost-efficiency are critical.

On the other hand, Solana’s growing adoption in the DeFi space could be another crucial factor behind the SOL price rally moving ahead.

Throughout the month of September, the SOL price has oscillated in the accumulation area of $113 and $125, while defending these levels as strong support during the previous downturns.

As shown in the image below, this is the zone where the buyers stepped in to prevent further decline and put Solana into consolidation. The recent SOL price rally from this accumulation range shows a renewed buying interest fueled along with strong trading volumes.

Courtesy: Trading View

The most notable aspect is the black downtrend line, which has served as resistance since Solana’s March peak near $205. On September 26, SOL broke above this line and has been sustaining its breakout momentum.

Another major catalyst is the central bank cutting down interest rates this month in September and pivoting towards monetary easing amid slowing inflationary conditions. Such monetary easing creates more favorable for risk-ON assets to proceed further. Lower interest rates decrease borrowing costs and boost liquidity, driving investors to pursue higher returns in riskier markets, which is currently benefiting Solana.next

Top Reason behind Solana (SOL) Price Rally Today