The owner of Coin Bureau Guy, who closely follows the cryptanalyst in the market, states that the leading competitor of Ethereum Solana is facing technical difficulties. The analyst also notes that another altcoin project has become the main competitor of Solana (SOL). Here are the details…
Investors turn to the competing altcoin project SOL
Guy, a popular cryptanalyst and Coin Bureau host, tells his two million subscribers on YouTube that investors are looking for an altcoin, an alternative to Solana, after network failures and hacks that affected the perceived reliability of the Blockchain. The analyst explains that for this reason, investors turned to the Near Protocol (NEAR) decentralized application platform (DApp):
It seems that Near Protocol is the main buyer for these users and investors, which makes sense given that it is Solana’s main competitor. Their blockchains have a similar architecture, use the same programming language, the software companies that created them are located in the same region and are supported by the same cryptocurrency venture capitalists.
A popular cryptanalyst points out other reasons why the price of SOL fluctuates despite updates, developments, announcements and partnerships in the altcoin ecosystem. According to the presentation of the crypto YouTube channel Coin Bureau, the reason for this is as follows:
SOL is an altcoin, which means that its price behavior is strongly correlated with BTC. As you’ve probably already noticed, Bitcoin has been going through difficult times since December 2nd… According to CoinGecko and CoinMarketCap, the turnover of SOL increased by 20 and 22 million, respectively. Assuming that the average price for SOL is about $100, this leads to potential pressure from sellers of more than $2 billion, assuming that all SOLS are sold.
SOL will retest its previous ATH
Guy, whose analysis we follow with interest as Somanews, also reviews the current performance of Solana, an Ethereum altcoin competitor. However, the analyst states that as soon as the cryptocurrency markets move to a clearer bullish movement, the altcoin project is likely to retest its previous historical highs:
There are more than half a dozen different institutional investment instruments for SOL, and as far as I understand, they have received a decent number of entries since December, despite the lower price of SOL.
According to the analyst, for retail investors, the recent launch of OpenSea in Solan has apparently led to an increase in demand for user services for SOL. It can be assumed that this is the case, given that, according to a popular analyst, the total value locked in the DeFi protocols of the altcoin project continued to fall during the recent SOL rally.