The crypto market bounces back after days of severe crashing with Solana (SOL) taking the lead well beyond others, bringing hopes of a recovery.
Briefing
Beginning with the top 10 cryptocurrencies according to market cap, the main change to take is the up movement of Dogecoin (DOGE) to 7th place, overtaking USD Coin (USDC) that previously held that position. However, XRP (XRP) remains above both DOGE and USDC even though previously being beneath them. Binance USD (BUSD) remains at 10th place with ~$9.8 billion in market cap, its competitor below Uniswap (UNI) appearing to catch up as the margin sits around $500 million at the time of writing. What is interesting to spot is that Bitcoin (BTC) and Ethereum (ETH) had the lowest gains over the past 24 hours at this scope, respectively being 7.8% and 6.1%, with the remaining within the top 10 (exclude US stablecoins) having gains of over 10%, the highest DOGE at 16.3%.
Moving over to the top 10 cryptocurrencies according to 24-hour trading volume, Tether (USDT) comes at the top, as usual, followed by BTC and ETH. USDT has broken the $100 million mark for 24-hour trading volume, which is more than the 24-hour trading volume for BTC and ETH combined (~$101 million). Following the usual triple is BUSD, indicating that a lot of activity is occurring with this US stablecoin, possible purpose including Defi movements. Familiar cryptocurrencies make up the rest of the top 10 for this scope, including Cardano (ADA), XRP, Litecoin (LTC) and Bitcoin Cash (BCH).
Switching to the top 10 gainers over the past 24 hours, SOL takes up the lead with a huge gain of over 35%, 37.9% to be more exact at the time of writing. This is a huge movement for such a cryptocurrency, especially considering the reliability and dominance it has to the market, currently standing at 14th for market cap. The causes of such a surprising spike for SOL will be detailed in the following section below. Between SOL and the following top 24-hour gainer, Quant (QNT - 26.3%), is an 11% margin, emphasising how bullish SOL has been. All top 10 gainers have gains of over 20% over the past 24 hours except the last one Chiliz (CHZ) sitting just under 20%: 19.7%.
When going to the top 10 losers over the past 24 hours, there is only one cryptocurrency other than US stablecoin derivatives that have a loss: Pirate Chain (ARRR - -2.9%). This means that every single cryptocurrency within the top 100 other than ARRR has experienced gains over the past 24 hours, showing how large this market bounce is.
3 Reasons For Solana's Leading Market Bounce
According to CoinTelegraph (Yashu Gola), 3 reasons have caused the outcome of an incredibly bullish day that overtakes BTC and ETH: the announcement of Pyth adding LMAX Digital (institutional exchange operator) as its data provider; inbound-outbound strategical investments, and a triple-support confluence.
The first reason mentioned in the announcement of a partnership between Pyth and LMAX Digital. On Tuesday, Pyth, a decentralised financial market data distribution network, tweeted out on its account that it has made LMAX Digital its first institutional exchange joining the Pyth Network as a data provider. The Pyth Network is built on the SOL blockchain and has received promising predictions on its effect on the market. David Mercer, CEO of LMAX Group, commented on LMAX Group's partnership with the Pyth Network as follows:
We believe the Pyth network built on the low latency Solana blockchain can revolutionise and democratise market data provision. This is a milestone for the industry as the Defi ecosystem expands and we look forward to helping develop the network, which will be the primary market data oracle. We are pleased to announce that we are already streaming our leading, precise core FX and crypto data on the network.
The announcement that Pyth releases on Twitter go much more in-depth about the partnership. The beginning tweet is snipped below with the link to the tweet here:
.https://twitter.com/PythNetwork/status/1407255614334464001
- PythNetwork
The second reason is the inbound-outbound strategical investments of SOL, or buying at lows and selling at highs in more simple terms. As with most other cryptocurrencies, SOL crashed mid-May and now recently that has accelerated over the past few days. The mid-May crash has SOL continuously falling until it reaches its lowest point, then on steadily increasing. With the current crash, the start of the mid-May crash has occurred: the continuous fall to its lowest point. It appears that SOL has now hit its lowest point, and so experiences a rocket gain as it heads upwards then on.
The third reason is another investment strategy, which is the indication of a gain for SOL as it hits what is called by CoinTelegraph as a triple-support confluence, or third resistance point in simpler terms. Over the past 3 months, SOL has consistently shown that it has a strong resistance point around $20, experiencing bullish trends at this resistance. In this scope, it first happened 18 April, then 23 May, now occurring over the past few days, hitting low on 22 June (i.e. yesterday). From such a consistent trend, this attracts buyers, and so pushes SOL's price up.
Further Reading
CoinTelegraph - 3 reasons why Solana bounced harder than Bitcoin and Ethereum - https://cointelegraph.com/news/3-reasons-why-solana-bounced-harder-than-bitcoin-and-ethereum
DYOR Crypto Wiki - Solana (SOL) - https://dyor-crypto.fandom.com/wiki/Solana_(SOL)
LMAX Group - LMAX Group enters the DeFi space as a market data provider to the Pyth Network - shorturl.at/jqGH7