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01/23 05:20

Is Solana More Than Just Hype? Here’s Why the Real

Is Solana More Than Just Hype? Here’s Why the Real Test Begins Now!

Among large-cap stocks, Solana leads the market with a 27% weekly gain at the time of writing. Make no mistake, it’s not leading by accident. Trump hype has sent demand for SOL soaring, with $3 billion of the stablecoin flooding the network — clearly, FOMO is driving investors in. The memecoin craze has sparked a surge in liquidity. However, with the hype likely fading, what’s next for Solana?

Has it become too hyped?

The day before Trump’s launch, the Solana stablecoin had a market cap of $6.1 billion. Now? That number has surged to $9.88 billion — a 61% increase in less than three days. USD inflows also hit a new all-time high of $1.757 billion — the largest ever.

As investors jumped on the memecoin bandwagon, the network minted stablecoins to keep up.  Solana followed closely behind, surging 19.53% in a single day, breaking out of the doldrums and outperforming the post-election rally price.

In just three days, stakeholders enjoyed huge profits. No doubt, after two months of patient waiting, HODLers quickly cashed out. However, just two days later, SOL gave back more than 12% of its gains, with volume surging to a 5-month high of $25.07 million.

Beyond the numbers, SOL’s recent decline signals a deeper shift. Has the network become too reliant on the “hype” of memecoins, pursuing short-term gains instead of long-term “value”? While the hype has pushed Solana to new heights, the real question now is – will FOMO return now that the memecoin craze has cooled?

Solana’s real test begins

Two days ago, $384.79 million worth of SOL was sent to exchanges at $261. At this level, open interest soared to an all-time high of $8.79 billion.

What are the consequences?  A brutal long squeeze wiped out over $21 million in just 24 hours. Imagine the millions lost in the last 36 hours. With futures traders in shock, the return of FOMO feels like a tough gamble.

On the psychological front, however, the MACD remains bullish for the SOL/BTC pair, suggesting retail investors could make a comeback as Bitcoin enters “risk-high” territory and market volatility rises.

Still, in the absence of new accumulation, profit-taking is rife. More than 80% of HODLers remain in profit. Solana now faces a real test — can it maintain momentum, or rely on a short-lived trend bounce?

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