Bitcoin included BTC$111,933.36 After hitting fresh records with ether (ETH) integrated, slightly above $110,000, Solana Sol$209.89 He recently appeared as a standout performer on the Crypto Market.
The token was about $211 on Monday, up 33% from early August, becoming one of the best performances in the Coindesk 20 index in the past month. Against Bitcoin, Sol has scored 34% in the past month, and has been bolstering 14% against ETH since mid-August.
The rally reflects a wider turn towards altcoins, analysts said.
“The season of profit redistribution between cryptocurrency owners continues,” said Sergei Gorev, director of risk at Youhodler, in a market memo shared with Coindesk. He noted that liquidity has moved from BTC to tier 2 tokens, a “significant increase in the positive dynamics of capital flow to SOL.”
Such flows could be long-term, as they are looking for large-scale liquid projects held by corporate investors, adding that Gorev is naming SOL along with XRP XRP$2.8446 As “The Next Interesting Market Idea.”
Arca’s Chief Investment Officer Jeff Dorman tipped Sol earlier this year to replicate the Ether transformation. He pointed to the revival of Ethereum after stable adoption, strong ETF influx and merciless bids from the Treasury or DATS for digital assets.
“It looks like Sol is poised to repeat the exact same playbook that ETH just ran in the coming months,” Dorman wrote in a fresh report.
The first US registered Solana ETF was launched in July, but was on futures basis. Several asset managers, including Vaneck and Fidelity, have applied for spot products with decision-making scheduled later this year, Dorman said.
Meanwhile, at least three Solana-centric data are raising funds that can lead to Sol up to $2.65 billion next month, he added.
Solana-centric Digital Assets Treasury Announcement (ARCA)
At one fifth of ETH’s market capitalization, the price of Sol could make the flow even more responsive if they are realized.
“Sol may be the longest obvious right now,” Dorman said. “If ETH prices rise almost 200% with a new demand of around $20 billion, what do you think will happen to Sol with a new demand of over $2.5 billion?”
Recent news could also gain momentum. While NASDAQ-listed digital assets conglomerate Galaxy has digitized its Solana stock, the approval of the Alpenglow upgrade promises to improve transaction speed and finality.
Read more: Trump, XRP, and SOL options show potential end-of-year Altcoin seasons: PowerTrade
