Solana’s Price Outlook: Falling Behind Binance Coin – Can It Make a Comeback?
Joel Frank
Last updated: June 14, 2024 10:02 EDT | 2 min read
Amid a challenging crypto market and a strengthening US dollar, Solana (SOL) is facing a drop to new one-month lows after slipping behind Binance Coin (BNB).
Currently trading around $148, the Solana price seems to be under the control of bears. Chart analysis indicates that SOL is below its 21 and 50-day moving averages, as well as the crucial $160 level.
The rapid growth of the Solana ecosystem witnessed in late 2023 and early 2024 has slowed down in recent months. Despite efforts, the blockchain’s Total Value Locked (TVL) remains below $4 billion, according to DeFi Llama. Network fees have been relatively stable since April, explaining why the Solana price has been unable to surpass $200 since March.
Binance Coin’s TVL has also hovered around $5 billion recently, leading to its recent surge ahead of Solana. With a current price of $610, BNB boasts a market capitalization of $90 billion, while SOL has a market cap of $68 billion.
Both cryptocurrencies show promise in the current bullish market, with vibrant web3 ecosystems catering to various high-potential applications. While both SOL and BNB are recommended for beginners in the crypto space, concerns about Binance Coin’s ties to the Binance exchange could hinder its growth potential in the long term.
Decentralization is a fundamental principle of the crypto world, with Solana also facing centralization concerns of its own.
Solana’s Price Forecast – Is a Recovery Possible?
Despite a strong long-term outlook for Solana, short-term selling pressure may persist. Continued selling by Bitcoin miners post-halving could keep BTC below $70,000, impacting the broader crypto market. Solana’s price may test the key support level at $120 in the near future, presenting an opportunity for long-term investors to enter the market again.
Consider an Alternative – Sealana (SEAL)
While Solana may offer good returns in the ongoing bull market, higher-risk meme coins within its ecosystem could yield even higher profits. One such new meme coin, Sealana (SEAL), based on a lovable South Park-themed seal, has raised over $4 million in its presale. For more insights on this coin, watch the video by Cryptonews.com’s analyst Arjay.
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