By and large, the return on investment (RoI) was negative for most of the alts this week. That said, the king’s coin of the market was showing some signs of recovery at press time, as were the other alts. Solana’s price chart showed something similar. Despite a 14% weekly decline, the Alt rose 0.95% in the past 24 hours to trade at $ 32. If this trend continues in the next few days, can SOL move towards a new ATH?
Well, the above question has a twofold answer and a variety of factors must be considered before reaching any conclusion. At the beginning, people from the community increasingly expose themselves to Solana’s social media handles. CoinGecko’s chart showed that Solana’s number of Reddit subscribers has increased dramatically since the start of the year. In fact, the same value at press time was 27,185 ATH.
Interestingly, when SOL’s price began its downtrend in May, its market capitalization was barely affected. In fact, at the time of writing, that same score was an impressive 0.564%. In context, the dominance of the old on January 1st of this year was only 0.01%.
The Alt would have to overcome a handful of hurdles at this stage to continue its uptrend.
First of all, falling volumes since the last week of June are causing concern for Solana. As shown in the attached chart, the value of the volume at press time ($ 65.95 million) was quite low compared to its local high on May 20 ($ 2.06 billion). Only if the quantities increase would the price of SOL get the actual kickstart it needs.
The volatility of the old has also been an obstacle since mid-June. The same is more inclined downwards. At the time of writing, SOL’s volatility was 1.35, while on June 16 it was reflecting a value of 2.6.
Although subscribers on social media platforms have seen a surge, the Alt’s social dominance and social volume have not increased. The not so high social mood is a bearish tale for the price of SOL. The same was proven by Santiment’s horoscope.
However, Solana’s weekly development activity on GitHub has been pretty impressive. In fact, it has given Ethereum head-to-head competition.
Weekly GitHub development activity:
# 1: 407 Cardano
# 2: 324 Kusama
# 3: 324 polkadot-new
# 4: 283 Gnosis-Gno
# 5: 276 file coin
# 6: 275 Ethereum
# 7: 248 Solana
# 8: 231 status
# 9: 208 Elrond-egld
# 10: 181 flow
– ProofofGitHub (@ProofGitHub) July 16, 2021
In fact, Solana can be scaled up without being dependent on L2 and sharding. This makes the Alt a great option for investors to park their funds. On top of that, Solana’s one-year ROI was a whopping 2718.32%, while ETH was only able to generate a 730% return over the same period. At this stage, Solana definitely presents itself as a compelling alternative to invest in compared to the largest altcoin on the market.