Ethers

With bitcoin BTC$112,260.21 stuck just above $110,000 and ether (ETH) consolidating after hitting fresh records, Solana SOL$209.27 has emerged as a standout performer in the crypto market recently.

The token traded around $211 on Monday, up 33% from early August lows, making it one of the best performers in the CoinDesk 20 Index in the past month. Against bitcoin, SOL has gained 34% over the past month, and it has strengthened 14% versus ETH since mid-August.

The rally reflects a broader rotation into altcoins, analysts said.

“The season of profit redistribution among holders of cryptocurrencies continues,” Sergei Gorev, head of risk at YouHodler, said in a market note shared with CoinDesk. He said liquidity has been moving out of BTC into second-tier tokens, with “a noticeable increase in the positive dynamics in capital flows to SOL.”

Such flows could be long-term as corporate investors look for large, liquid projects to hold, Gorev added, naming SOL alongside with XRP XRP$2.8512 as the “next interesting market ideas.”

Jeff Dorman, chief investment officer at Arca, tipped SOL to replicate ether’s turnaround earlier this year. He pointed to Ethereum’s resurgence after stablecoin adoption, strong ETF inflows and the relentless bid from digital asset treasuries, or DATs, helped ETH rally nearly 200% since April.

“SOL appears poised to repeat the exact same playbook that ETH just executed in the coming months,” Dorman wrote in a fresh report.

The first U.S.-listed Solana ETF launched in July, but it was futures-based. Several asset managers, including VanEck and Fidelity, have filed for spot products with decisions due later this year, Dorman said.

Meanwhile, at least three Solana-focused DATs are raising funds that could channel up to $2.65 billion into SOL over the next month, he added.

Solana-focused digital asset treasuries announced (Arca)

At only one-fifth of ETH’s market capitalization, SOL’s price could be even more reactive to the flows if they materialize.

“SOL might be the most obvious long right now,” Dorman said. “If the price of ETH rose almost 200% on roughly $20 billion of new demand, what do you think happens to SOL on $2.5 billion or more of new demand?”

Recent news could also add to the momentum. Nasdaq-listed digital asset conglomerate Galaxy Digital tokenized its shares on Solana, while the approval of the Alpenglow upgrade promises to improve transaction speed and finality.

Read more: TRUMP, XRP, and SOL Options Signal a Potential Year-End Altcoin Season: PowerTrade

Source link

Bitcoin BTC$115,244.11 bounced off the $111,800 support level on Friday, sharply rising by 2.6% to $114,800 after Federal Reserve chairman Jerome Powell hinted at potential rate cuts during a speech at Jackson Hole.

The swift move, preceded by a sell-off leading up to the speech, resulted in the liquidation of more than $375 million worth of crypto derivatives positions, according to CoinGlass. The majority of those losses are attributed to traders holding short positions.

Ether (ETH) positions were the hardest hit, with $150 million liquidated over the past four hours as the price rose from $4,200 to $4,650, marking a 10% gain.

Bitcoin’s level of support was critical as it was a record high set in May. The bounce indicates a bullish reversal following a one-week downtrend from $124,500.

ETH/USD (TradingView)

Despite fears that Powell’s speech would have a hawkish tone, he said “the downside risks to employment are rising,” and “If those risks materialize, they can do so quickly in the form of sharply higher layoffs and rising unemployment.”

The comments suggest rate cuts could be on the table next month, which would directly benefit risk assets like bitcoin and ether.

The market remains volatile following the speech, with BTC pulling back slightly from $115,700 to $114,800. While liquidations have taken derivatives positions out of the market, open interest has risen to its highest point in four days, suggesting that the bounce is also being backed by leverage, according to Coinalyze.

The altcoin market is lagging behind ether with the exception of lido (LDO) and ethena ENA$0.7359, which are both continuing their upside ascent after the SEC clarified rules around staking earlier this month.

Source link

Outperforms BTC, Poised to Follow Ether’s 200% Rally on ETF and Treasury Demand

Bitcoin (BTC) and Ether’s (ETH) Violent Price Spike Prompts $375M in Futures Liquidations