Solana cryptocurrency (SOL), which suffered a 94% loss in 2022, has undergone a remarkable turnaround this year, witnessing a staggering surge of over 900%. Consequently, SOL has surpassed XRP and BNB cryptocurrencies in terms of market capitalization, securing the #4 position this week. The last time SOL held the #4 spot on the cryptocurrency list was in November 2021. Currently, SOL is inching closer to the $100 mark, a significant jump from its 2022 year-end value of just under $10.
Undoubtedly, there is a renewed investor enthusiasm for altcoins in the cryptocurrency market. An analysis of Google Trends indicates that the number of searches for the term "Solana" in the English-speaking domain is approaching the search volume for “Ethereum.”
The success of SOL can be attributed to the expansion of its ecosystem, including the decentralized exchange Raydium and several other decentralized exchanges (DEXs). Transaction volumes on Solana-based DEXs surpassed $9 billion in the past week, outpacing the transaction volume in the Ethereum ecosystem ($8.836 billion) during the same period. This dominance in favor of the Solana ecosystem is a historic first. Much of this success is driven by renewed investor interest in Solana-based meme coins, particularly the BONK token, which has experienced a 327.4% price surge since the beginning of December.
The DEX share on Solana, which was a mere 2% of the total transaction volume on all types of DEXs worldwide at the start of September, has now risen to 17.84%. Additionally, the amount of staked cryptocurrencies has seen substantial growth, surpassing the $2 billion mark with a 400% increase over the past four months. You can see the increase in trading volume points on the volume indicator.
It's noteworthy that other altcoins are also displaying significant growth. For example, at the time of writing, DOT increased by 6%, AVAX by 8.5%, and the Near Protocol blockchain project recorded a 16% increase in its token's price. This pushed the total market capitalization of the digital asset market to almost $1.65 trillion.
In addition to these factors, the cryptocurrency market is also riding on expectations of three rate cuts by the US Federal Reserve. Futures trading on the Chicago-based CME Group indicates a 98% confidence among traders that the US Federal Reserve will implement at least three cuts in the benchmark interest rate in 2024. Stay in the know about significant Fed meetings – keep track of them with the help of the US economic calendar. Anticipating an increase in liquidity, both the cryptocurrency market and Wall Street are demonstrating a robust move into positive territory.