Solana Increasingly Becoming a Competition for Ethereum in the NFT and DeFi
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Solana (SOL) has capitalized on the shortcomings of Ethereum as it continues to colonize significant amounts of the NFT and DeFi spaces.
As the competition to claim dominance over the DeFi and NFT spaces intensifies, many wonder what lies in the fire for the NFT market. Nonetheless, there exist strong indications that Solana is a major competition for Ethereum over the dominance of the industry.
Over the months, Solana has portrayed itself as a better alternative to Ethereum. With the SOL network currently boasting most of the features and capabilities Ethereum hopes to achieve with its ETH 2.0 upgrade, many believe that SOL is indeed better positioned to battle with Ethereum.
Solana currently has a faster transaction time, cheaper transaction fees, and has better eco-friendly properties than Ethereum. With these features and many more, it becomes clear why more NFT projects are migrating to the Solana blockchain.
According to recent data from DappRadar, NFTs volume on the SOL blockchain has now exceeded $1 billion. SOL also performs exceptionally in the NFT gaming space as it has recorded numerous venture capital investments targeted at improving the play-to-earn gaming model.
Nonetheless, SOL has a significantly long way to go before actually matching up to Ethereum in terms of numbers or flipping its dominance. Most of the big-name projects in the NFT space remain on the Ethereum network.
Key Solana Levels to Watch — December 31
SOL, along with most of the crypto market, experienced a sharp switch in momentum on Monday as it receded from a multi-week high at $204. The crypto asset fell to the $170 floor and has remained on that level over the past 48 hours, indicating that bears lack the composition to drive prices lower than this level.
Not surprisingly, my pivot base falls directly on the $170 line, which extended additional support to SOL over the days. With this level refusing to budge, I expect a rebound towards the previous high over the coming days.
Meanwhile, my resistance levels are $182, $190, and $200, and my support levels are $170, $160, and $150.
Total Market Capitalization: $2.21 trillion
Solana Market Capitalization: $53.3 billion
Solana Dominance: 2.41%
Market Rank: #5
