Solana has surpassed Ethereum in stablecoin activity, showcasing its growing influence in the crypto ecosystem. Despite a recent 10% price dip, SOL’s momentum remains significant. ETH price hovers near $3k and faces stiff competition as Solana advances. Following its ATH earlier this month, market watchers speculate whether the recent Solana price correction could fuel a 20% rally in the near term.
SOL Overtakes ETH as Solana Price Crashes 10%
Solana price plummeted 10% as the crypto market faced sharp declines. Bitcoin fell to $100K, while ETH, XRP, and DOGE also tumbled. The global crypto market cap decreased by 6%, now at $3.37 trillion. Monday’s volatility highlights ongoing market uncertainty affecting top cryptocurrencies and altcoins alike.
SOL has overtaken Ethereum in stablecoin supply growth, marking a significant shift in the crypto market. Data from Artemis shows Solana leading with a monthly net supply increase of approximately $5.3 billion, surpassing Ethereum’s $4.2 billion growth.
This surge highlights increasing confidence in Solana’s blockchain, known for its speed and lower transaction costs. The trend suggests traders and DeFi users favor SOL for stablecoin transactions, reflecting its growing role in the ecosystem.
The rapid rise in Solana’s stablecoin supply could signal a broader shift in market dynamics. ETH has long dominated the stablecoin sector, but Solana’s lower fees and faster processing times are attracting more users.
Other chains, such as Base and TON, also showed positive supply growth, while networks like Tron and Arbitrum saw declines. As liquidity flows into Solana, the competition between blockchains intensifies, reshaping the DeFi landscape.
This development raises questions about the future of stablecoin settlements and whether Solana can maintain its momentum over Ethereum.
Source- X
Will SOL Rebound or Drop Further?
The SOL price is trading at $222, marking a 10% decline over the last 24- hours. The price has fallen below the key $250 resistance level, testing support around $221.
A further drop could push the Solana price forecast toward the next significant support at $180. However, a bounce from current levels may see a retest of $250, surging by 10%, with a potential breakout leading to $300.
The RSI indicator is currently at 29.69, suggesting oversold conditions on the 4-hour chart. A recovery from this zone could trigger a price rebound.
SOL Price chart: TradingView
Solana’s stablecoin growth signals a shift in market preference, challenging Ethereum’s dominance. With strong fundamentals and DeFi momentum, SOL could rally if bullish sentiment returns. However, resistance levels remain key, and further declines could test investor confidence in the short term.
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