Investing

Bitcoin (BTC) Up 200% But This Crypto Is Up 658%

Sam Daodu

Published: March 18, 2024 9:39 am

Last Updated: April 8, 2024 12:55 pm

Bitcoin (BTC) has been known for a very long time as the first cryptocurrency. This status gives its price the ability to affect the crypto market. Nevertheless, a particular digital asset that has currently been impacting the digital industry due to its unconventional features is Solana (SOL). 

Bitcoin has experienced a massive increase in price at 200%. In the same vein, Solana has an impressive 658% rise over time. This article attempts to explain the rationale behind the 200% increase in the price of Bitcoin as well as the 658% growth of Solana.

Exploring Bitcoin’s (BTC) Recent Surge: What’s Behind the 200% Price Increase?

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Bitcoin’s recent surge in value can be attributed to several factors. This article will examine three factors influencing Bitcoin’s astronomical price increase:

1. Bitcoin ETFs: In the past, there weren’t any available exchange-traded funds (ETFs)  preventing the digital asset from a global and wider range of being adopted institutionally. ETFs give room for investors to acquire more knowledge about Bitcoin, without necessarily incurring the troubles of directly acquiring it. Then in 2024, the long-awaited approval of Bitcoin spot ETFs in the United States gave access to a lot of institutional investments. This gave managers of major assets as well as investment banks the opportunity to introduce their clients to Bitcoin investment giving room for a new capital in the market. Based on the above, the demand for Bitcoin scaled up thereby causing the price to go upwards.
2. Bitcoin Halving: Bitcoin halving is a distinct event that reduces the supply of Bitcoin getting into the crypto market. This happens approximately every four years and it deducts the rewards for Bitcoin miners by half. By virtue of this feature, there is a direct impact on the supply of Bitcoin in circulation at the time. Also, in. April 2024, the fourth Bitcoin halving is expected to happen thereby making the already scarce digital asset tighten in supply. The supply shock caused by the halving event as well as the rising demand from the institutional investors makes Bitcoin more valuable causing the price to skyrocket.

Solana’s (SOL) Recent Price History

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Solana (SOL) has capitalized on a strong market bull rally in the later parts of 2023 and early in the year 2024. The strength market bell run has caused Solana to encounter a rise in the frequency of its users’ activities. Reports show that the transaction capacity grew at a significant rate from $22.1 million on the 6th of February to $33.7 million on the 26th of February, thereby showing the rising engagements of its users.

Even though the transaction capacity dipped a bit at the end of the month, it can be said to be an effective growth in a general sense. To further outline this significant rise, Solanas total value locked(VTL)  has peaked at $2.5 billion, this approximates a 30% increase year-to-date. This overtakes other cryptocurrencies like Ethereum (15% growth) and BNB chain (12% growth in BNB deposits) with statistics of their growth in relation to the same period of time. 

While Solana’s network outage on February 6th disrupted transaction processing for 5 hours the response from the market was quick and efficient and after proper rectification of the issue, everything stabilized properly. The SOL price showed strength for the most part of the month of February, upscaling from a low of $95 on February 4th to a height of $130 at the end of the month. This approximately gives it a nearly 27% increase within the space of a month.

Solana prides itself in a more swift development mechanism and upgrade implementation than an Ethereum Virtual Machine (EVM) compatible network  This advantage helped with the recent power outage. Although the power outage caused interference in the exchange and DApps, it didn’t cause a significant dip in the price of SOL. This is actually as a result of the tact action of SOL developers. Solana has been on a surge trend and has experienced growth at 35.33% in the last week and 76.54% in the last month. This growth progress of Solana has been a very outstanding outcome, this has made it to be an eye-catching investment option.

Solana(SOL) turned out to be quite a unique performing digital asset for this month after encountering an elevation in price of 10% in the last 1 day. SOL at the moment trades at $204.16 per CoinMarketCap. This growth depicts a return to the initial $200 price point since December 2021. Another major highlight is that SOL is currently the fourth largest cryptocurrency by transaction capitalization exceeding $90 billion. Currently,  there are approximately $443.3 million SOL coins in circulation.

Breaking Down Solana’s (SOL) 658% Surge: Insights into Its Growth Drivers

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Basically, this surge didn’t come to be on its own. There are some possible reasons behind this and they are mentioned below:

• Addressing Scalability Issues: Ethereum has remained a dominating platform for decentralized applications (DApps) for a very long time. However, the network has struggled recently with issues that have to do with scalability. This has led to high transaction bills and delays in processing times. In addition, Solana flaunts an exclusive Proof-of-Stake (PoS) and Proof-of-History (PoH) hybrid consensus technique that aids rapid and economical transactions which makes it a possible substitute for the development of DApps.
• Rise of DeFi and NFTs: The flourishing Decentralized Finance (DeFi) and Non-Fungible Token (NFT) markets require high-performance blockchains. Solana’s ability to fast-track transactions and also charge lower fees makes it competitive in a speedily developing expanse, where developers and users find it appealing — this will probably cause a surge in the price of SOL
• Durable Ecosystem: Solana boasts about a speedily emerging developer ecosystem, with multiple reassuring projects created on its platform. The durable project momentum and vivacious developer community fuel optimism for the future of Solana, possibly causing an increase in the price of SOL.  Solana has partnered with Filecoin, a decentralized data storage marketplace, to enhance its blockchain’s dependability and scalability. This partnership permits Solana to make use of Filecoin’s framework thereby improving data verbosity, scalability, and security. Basically, this partnership strengthens Solana’s commitment and dedication to building a rigid and durable ecosystem.

Future Predictions for Bitcoin (BTC) and Solana (SOL)

In recent times, there’s been a growth in the financial value of Bitcoin (BTC), and Solan(SOL) suggests a positive market ideology. Analysts have made provisions for price estimations for 2030 by coming up with multiple prospects:

• Bitcoin (BTC): There have been several predictions by our crypto analysts about a range of price outlooks for Bitcoin. In a bullish scenario, the price could come up to $347,000. A more conservative base case scenario suggests a price of $312,000, while a bearish prediction estimates a price of $277,751.
• Solana (SOL): our long-term forecasts for Solana (SOL) in 2030 show the coin trading between $2,235 to $2,675 with an average price of $2,298.

It is necessary to highlight that our forecasts are not absolute. Therefore, they are subject to market sentiments, future market conditions, and other factors that inevitably affect the actual prices of BTC and SOL.