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Simon Chandler
Author
Simon Chandler
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Solana has fallen by 1.5% in the past 24 hours, with the SOL price moving to $130 as Bitcoin gains by over 2% today and most other major alts suffer similar drops.
SOL has now lost 1% in a week and 8% in a month, although the cryptocurrency retains a healthy 580% gain in a year.
These percentages come after Cyber Capital founder and CIO Justin Bons posted a strong defence of Solana’s tokenomics, highlighting its burn mechanism and the fact that new issuance has been declining.
Such points bode well for the coin’s future, and with Solana remaining one of the biggest layer-one networks in the market, the SOL price certainly has a bright future.
Solana to $300? CIO Debunks FUD, Highlighting Burn Mechanism: SOL Price Analysis
Bons comments find SOL in an interesting position, with its indicators suggesting that a rebound may be coming for the altcoin.
For instance, its 30-period moving average (orange) fell below the 200-period average (blue) a couple of days ago, meaning that it’s now due to rise back towards the longer term average, bringing the coin’s price with it.
SOL’s relative strength index (purple) is also in a position to rise, having fallen to 20 on Monday and now hovering around 50.
The alt’s trading volume also suggests incoming interest, rising to $2.1 billion today after dropping below $1 billion over the weekend.
Indeed, Solana remains the most popular altcoin (after Ethereum) among institutional investors, as the latest CoinShares Digital Asset Fund Flows report shows.
And this fact chimes with Justin Bons’ remarks, with the founder arguing that SOL’s tokenomics are “a textbook example of what good token economics should look like.”
He draws parallels between Solana and Ethereum after its EIP-1559 update, which introduced a burn mechanism which rises with greater network traffic.
Yet he contends that, in contrast to Ethereum, Solana is actually scalable, implying that it has stronger fundamentals and better prospects for adoption.
This point is debatable, but there’s little doubt that Solana is now the biggest layer-one network in the cryptocurrency ecosystem, not including Ethereum.
It currently processes around 16 million transactions per day, and has a total value locked in of $4.7 billion, representing a 1,400% increase over the last 12 months.
This speaks to its consistent growth over the past year, with meme token issuance boosting Solana’s traffic.
Based on this, the SOL price should $150 by the end of next month and $200 by December.
New Meme Tokens Promise Big Returns
While we continue to affirm SOL’s long-term position, it certainly won’t be the only altcoin to have a strong end to the year.
Not only are there numerous new small-cap tokens that could outperform the market, but several presale coins have been generating lots of momentum recently.
One of these is Crypto All-Stars (STARS), an exciting new Ethereum-based token that has raised $1.3 million in its accelerating sale.
Crypto All-Stars has very interesting fundamentals, in that it will launch a ‘MemeVault’ that enables users to stake any meme token whatsoever.
It uses the ERC-1155 multi-token standard, with which it can tokenize any cryptocurrency, including coins that don’t normally run on Ethereum.
This will give it massive reach and accessibility, with the coin’s X account already reaching over 13,000 followers.
Excitingly, users who hold more STARS tokens will receive greater rewards, something which incentivizes long-term holding of the coin.
It features a max supply of 42.069 billion, with investors able to join its sale by going to the official Crypto All-Stars website.
1 STARS token currently costs $0.0014477, although this price will rise again tomorrow.
Interested parties should therefore act very quickly, and should certainly move before the coin lists, since early signs suggest it could surge.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
