SOL's market value has reached a strong peak, and the momentum of the bull market continues to increase

On July 22, Solana (SOL) price exceeded US$200 for the first time since February 2024, with a daily increase of 5.3%, a cumulative increase of 22.6% this week, a 31.7% increase in the past 14 days, and a monthly increase of as high as 44.4%, showing a strong buyer's strength continues to pour in. Previously, SOL fluctuated for several months in the range of $120 to $150, and the breakthrough marked a significant rebound in market confidence.

Looking back on history, at the end of 2022, due to the impact of the FTX incident, the SOL price once fell below $10. Since then, its price has achieved a cumulative increase of nearly 2,000%, becoming one of the most outstanding mainstream crypto assets in this bull market.

This round of increase has driven SOL's total market value to officially cross the $100 billion threshold. This key node not only reflects the market's growing recognition of the Solana public chain ecosystem, but also reflects the simultaneous increase in institutional and retail investors' participation. At the same time, the DeFi ecosystem on the SOL chain has also ushered in an active period. Many core indicators such as TVL (total locked value) continue to rise, and the expansion of the ecosystem is accelerating.

In the latest "Crypto Market Status" report, 21Shares, the world's leading crypto ETP publisher, highly praised SOL, predicting its short-term target price of $336, and it is expected to hit $2,000 in the long term. The core factors supporting this optimistic expectation include: the continuous expansion of ecological fundamentals, the increase in network usage, and the macro environment's preference for high-growth assets.

However, Bitcoin (BTC) has shown signs of a pullback recently, falling to $117,000 at a low of $117,000, and both the daily and weekly lines showed a slight decline. If BTC enters a deep adjustment, it may have a certain impact on the rising rhythm of assets such as SOL. After all, there is a strong correlation between mainstream currencies, so we need to be wary of the risk of market resonance downward.

From the edge to the mainstream, SOL has become a "new force" in corporate vaults

In recent years, more and more listed companies have incorporated crypto assets into their financial strategies. Companies such as MicroStrategy, Tesla, Square, etc. have long been deploying in BTC, and some traditional companies have also begun to hold ETH to hedge the risk of fiat currency depreciation. With the rapid development of the Solana ecosystem, this public chain, which was once questioned for "over-centralization", is gradually becoming an important option for enterprise digital asset allocation.

21Shares and VanEck have submitted applications for SOL spot products to regulators, with the intention of providing compliance channels for institutional investors; according to Bloomberg, citing sources, some large Web3 companies are gradually converting their holdings USDC and USDT reserves into SOL to support their DeFi and NFT business operations on the Solana chain. What is more noteworthy is that the top venture capital Multicoin Capital not only continues to increase its holdings of SOL, but also clearly stated in the quarterly letter: "SOL is the most developer-oriented L1 public chain second only to ETH. On-chain activity, TVL and user growth have all entered the explosive stage. For institutions, holding SOL is no longer a short-term speculation, but a strategic bet on future high-performance blockchain applications."

From a macro perspective, many corporate CFOs believe that in the context of global liquidity easing and potential interest rate cuts by the Federal Reserve, high-growth digital assets can bring higher returns elasticity to the balance sheet than traditional US bonds. Compared with BTC's "digital gold" attributes and ETH's "decentralized infrastructure" positioning, SOL is more like a "growth option" for enterprises to bet on the next generation of high-performance chain applications.

Behind the company's favor of SOL is not only the impressive price performance, but also the solution to the actual needs that are difficult to meet in the short term by BTC and ETH.

First, SOL is known for its high throughput and extremely low transaction costs. Compared with Ethereum's high Gas fees, the cost of transfers and smart contract calls on the SOL chain is almost negligible, which is crucial for companies that need to deploy large-scale DeFi, NFT, GameFi and payment systems.

Secondly, SOL's developer ecosystem continues to grow. According to on-chain data reports from Messari and Electric Capital, SOL's number of active developers and new contract deployment growth rate ranks second in the industry, second only to Ethereum. This means that more real application scenarios are being implemented, and the growth of on-chain revenue will also feed back the value of tokens, forming a virtuous cycle of "ecological prosperity - market value increase - capital inflow - ecological re-expansion".

In addition, from the perspective of compliance and liquidity, SOL has jumped from an early "niche chain" to a leading asset. As institutions such as 21Shares and VanEck promote the launch of SOL spot ETP, and mainstream exchanges such as Coinbase continue to deepen the depth of SOL derivative trading, the liquidity risk of enterprises holding SOL has been significantly reduced, and the entry and exit positions and hedging operations are more convenient, which improves the flexibility of asset allocation.

From the perspective of financial strategy, BTC is used to resist inflation, ETH is used to ecological diversification, while SOL is seen as a long-term choice for betting on high concurrent on-chain businesses in the future. For corporate vaults seeking balance between stability and growth, such a combination is becoming increasingly attractive in the current macro environment.

SOL leads the market, XRP and DOGE follow closely to accumulate strength and breakthrough

While SOL leads the rise strongly, Ripple (XRP) also shows strong upward momentum. After successfully breaking through the key resistance of $2.8, XRP quickly climbed above $3.5, completely breaking the previous sideways pattern that lasted for several months. The market generally expects that the new round of market impacting $5 may have quietly started, and there is still a lot of room for growth in this round of rise.

Technical level shows that the XRP trend structure is healthy. The 50th, 100th and 200th EMA have formed a standard long arrangement, indicating that the medium-term trend has turned into a strong position. The previous fluctuation range of US$2.4 to US$2.8 has now been transformed into a solid support belt, providing a strong support for subsequent rises.

Although prices briefly consolidated at high levels, the momentum indicators remain strong. Although RSI is in the overbought area, it has not seen a significant decline, reflecting that the market's willingness to buy is still strong. The only thing to pay attention to is the change in trading volume - the trading volume shrank slightly after breaking through $3.5. If we want to effectively overcome the psychological threshold of $4 and challenge $5, a new round of funds and market sentiment is still needed.

Industry analysts believe that as long as XRP can stabilize above $3.3 and with the recovery of trading volume, the impact of $5 will have a sufficient technical foundation. Especially in the context of BTC and ETH overall maintaining strong strength, there is a lack of obvious historical pressure levels in the upward path of XRP, and the future potential is worth looking forward to.

Dogecoin (DOGE) on the other hand also sends a clear reversal signal on the technical chart. The price has successfully broken through the 50-day, 100-day and 200-day moving averages, among which the 50-day EMA showed a significant upward turning point. Meanwhile, DOGE broke through the upward channel formed from the end of June to the beginning of July, opening up space to the $0.27-0.28 area. Prices have now stood firm in this range, with the next key resistance at $0.30.

Summarize

From BTC to ETH, and now SOL, the focus of this bull market is constantly shifting to high-performance public chains. SOL has not only become a new choice for corporate asset allocation, but also drives veteran and popular assets such as XRP and DOGE to usher in a dual resonance between technical and emotional aspects. Against the backdrop of changes in global liquidity and the gradual clearance of regulatory frameworks, the superposition of on-chain activity, capital inflows and narrative logic is opening up a broader development space for the crypto market.

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