Author: gum
Compiled by: Deep Tide TechFlow
The reason SOL will rise from here is that nobody is discussing it:
It has just begun to break out from a four-month-long consolidation.
The main reason it is breaking out now rather than a month ago is that SOL is the token that represents the health of the cryptocurrency market. It is the token that indicates whether there is risk appetite in the crypto space. The current movement is pricing in a return of risk.
Strong holders have regained control of the token, while traders and opportunistic funds have abandoned it, leading to a sharp decline in trading volume. Any reasonable increase in trading volume will shift momentum to the upside.
Strong institutional involvement and integration with DeFi and RWAs (@onrefinance, @PreStocks, @xStocksFi, @HastraFi); the Clarity Act will benefit Solana and $SOL the most.
Solana has been the most volatile cryptocurrency over the past four years. It has fallen 70% from its ATH but is still up 12x from the bear market bottom.
It was one of the very few tokens in the last cycle to set a new ATH and is the only blockchain with a robust ecosystem of applications, users, protocols, and use cases.
Volatility has created a large number of token holders who lack conviction in $SOL and are merely chasing momentum. I believe the price action over the past few months represents a shift in token ownership from short-term holders, traders, and tourists to long-term accumulators.
The Miami Accelerate conference marks the public's focus on AI implementation on Solana, so I expect a significant influx of excellent AI developers next year.
Memecoins will continue to thrive on Solana. No other chain is better suited for this. You might have a different opinion because of Asteroid, but a single day of on-chain volatility will lead to a significant spike in transaction fees, just as it has every time in the past.
Even if market participants pay high fees, they will encounter the same type of users/traders present on Solana and might finally realize that Solana merely facilitated the massive proliferation of memecoins, which requires products tailored to that demographic, such as Axiom, trading bots, etc.
