IMPORTANT POINTS:
- Solana surpasses Cardano in market capitalization and performance in the cryptocurrency market.
- Cardano has lost its position and is struggling to stay relevant while Solana experiences a strong rally.
- Market sentiment is leaning towards Solana, with an increase in open interest in SOL futures, while Cardano remains relatively quiet.
For much of this year, the rivalry in the world of cryptocurrencies has been led by two names: Cardano and Solana. Both have disputed the leadership in market capitalization and price of their tokens. While Solana has held the top spot on several occasions, Cardano has proven his resilience with impressive recoveries.
However, in the recent rally in the altcoin market, Solana has picked up its pace and left Cardano behind as the latter struggles to find its way back to its lost value. The cryptocurrency market had been in a constant downtrend since August. But Bitcoin dramatically changed the dynamics by orchestrating a surprising rally that broke the status quo.
Altcoins wasted no time in mirroring Bitcoin’s price action, with notable cryptocurrencies like Ethereum and Cardano notching modest 7% gains in the past week. However, Solana stood out by experiencing an impressive 33% increase, catapulting it to seventh position in terms of market capitalization.
At the time of writing, Solana boasted a market capitalization of over $12 billion, surpassing Cardano’s valuation of $9 billion. Even though both projects have been in a fierce battle throughout the year, Cardano’s response to the rally seemed calm as it remained within its trading range with limited buying pressure. At the time of writing, Cardano’s daily trading volume stood at $120 million, while Solana’s reached an impressive $800 million.
Although market sentiment around Cardano, as indicated by IntotheBlock, was predominantly leaning towards a bearish outlook, sentiment in the exchange and derivatives markets remained neutral, implying that investors seemed to be on the sidelines and not interested in participating. in the rebound.
On the other hand, Solana received an overwhelmingly positive response, especially from the Asian and futures markets. Evidently, open interest in SOL futures increased from $200 million to $350 million, while ADA open interest stagnated at around $80 million.
