Ethereum ($ETH) Rival That Surge Over 100% YTD May be Losing Momentum, Analytics Firm Reveals

The price of Ethereum ($ETH) rival Solana ($SOL), a high-performance blockchain using what’s known as Proof-of-History (PoH), the Solana blockchain is able to handle thousands of transactions per second, is up over 100% so far this year, but a leading analytics firm has warned it may be losing momentum.

Solana’s recent price surge, according to Santiment, was propelled significantly by short liquidations and now appears to be losing steam, suggesting that the cryptocurrency’s bullish trend may be reaching its limits. The price of SOL plunged last year after the collapse of FTX, which was a major supporter of the cryptocurrency.

 The most opportune period for investors to have capitalized on Solana’s growth, as per Santiment’s analysis, was in the second week of June. During this period, the funding rates exhibited a bearish spike which signaled an ideal buying window.

A positive funding rate is indicative of a market that is leaning bullish, whereas a negative funding rate suggests a bearish sentiment is dominant. Furthermore, an escalating funding rate signals bullish sentiment, while a descending one implies bearish sentiment.

Binance’s Solana funding rate has shifted to a positive 0.003%. In contrast, the funding rate in early June took a dip to a negative of 0.045%.

Santiment has also highlighted a steady reduction in Solana’s social dominance since the beginning of the year, which may suggest enthusiasm surrounding the cryptocurrency’s rise waned.

As CryptoGlobe reported, Solana was one of the cryptocurrencis mentioned as a security by the U.S. Securities and Exchange Commission (SEC) in its lawsuits against leading cryptocurrency exchanges Binance and Coinbase.

As a result, the United Kingdom-based financial technology giant, Revolut, has disclosed it’s set to delist  it along with other popular cryptocurrencies, $ADA, and $MATIC, for its US users.

 In total, the SEC has over a series of actions deemed over 60 digital assets to be securities, including Polygon, Cosmos ($ATOM), Axie Infinity’s $AXS, and $NEXO.

Notably, in an appearance on live television, SEC Chair Gary Gensler has unequivocally stated that he believes there is no need for additional digital currencies as “digital currency already exists in forms such as the U.S. dollar, the euro, and the yen.”

Featured image via Unsplash.

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