Solana (SOL), at the beginning of this month, made waves by surpassing Polygon (MATIC), and Optimism(OP) on the chain trading volume. This was a great reminder to the crypto-community that Solana is growing in strength. Solana outperformed Avalanche in terms of total value locked (TVL), within decentralized apps (dApps).

Anatoly Yakovenko, the co-founder of Solana, is credited with the project's recent successes. This success can be attributed to the growing interest in Solana projects, liquid stake protocols, decentralized exchanges and his leadership. Raoul Pal, a renowned trader, praised Solana's speed and ease of use. He compared it favorably to Ethereum. Solana's current momentum and resilience is a reminder that it has the potential to compete with some of the biggest players in the blockchain sector.

Solana Transactions Volume Beats Polygon & Optimism

The Solana blockchain made quite a splash in the cryptocurrency world at the start of this month by outperforming both MATIC, and OP, which are two popular Ethereum-based Layer 2 solution, in terms aggregated trading volume on the chain. The daily trading volume of Solana soared above $240,000,000 per day. Polygon and Optimism, on the other hand, recorded $137,000,000 and $40,000,000 per day respectively during this period. This accomplishment highlights Solana’s growing dominance, as it recorded more transactions on-chain than its Ethereum-based rivals combined.

Also, it is worth noting that the native token SOL of the network outperformed AVAX on Saturday in terms TVL within its dApp eco-system. Solana's dApp eco-system boasted a television value of $688,000,000, exceeding Avalanche’s $660,000,000. Solana's TVL could be challenged by Polygon and Optimism in the near future. In the last month alone, Solana TVL has risen by over 60%, while its price has risen by about 45%.

Solana, however, is still trying catch up with Arbitrum, an Ethereum Layer 2 solution that has a huge market share. Arbitrum boasts an impressive TVL of almost $2.2 billion, and a trading volume daily exceeding $363 millions.

Many people in the community have guessed what might be behind Solana’s recent successes. Many people believe that the success of Solana's projects, such as "SolScriptions" and meme coins has been attributed to the growing interest in Solana. Jito and Marinade Finance, two liquid staking protocols on the Solana blockchain, have been very successful at attracting new users as well as liquidity. Decentralized exchanges such as Raydium and Orca have also gained some traction in the Solana eco-system.

Solana Bouncing Back

The project is still a long way from its goal to become the "Nasdaq of the blockchain", but the SOL token has seen its price increase by 500% over the last year. Anatoly Yakovenko and his team of dedicated developers work hard to increase the global reach of the project through innovative products like the Sage Phone.

Ethereum supporters are still cautious about Solana because of its trade-offs. However, influential Ethereum developers and advocates believe that "monolithic chains" like Solana may be able to dominate the market, due to the difficulties in scaling Ethereum without compromising on user experience.

Yakovenko is also gaining respect in the crypto developer community as a result of his willingness and ability to participate in constructive and critical discussions on podcasts and social media. In this year's op-ed, the cofounder made a major step in his role of a prominent figure in the industry by writing it in Fortune. In his article, he argued for sensible regulation of digital currencies. He expressed his concern that an overly reactive approach to cryptocurrency regulations in the U.S. might lead to a loss of talent. He also said that he meets aspiring entrepreneurs who are eager to innovate within the U.S. technology sector, but they lack the knowledge of how to set up a blockchain compliant company. This highlights the need for clear regulations.

Solana vs Ethereum

Raoul Pal, a well-known crypto trader and investor, has joined the debate on the dominance of Ethereum and Solana. Pal compares the two blockchains by comparing Solana with the "Apple" and Ethereum to "Android." The analogy comes from the fact that Solana is known for its exceptional performance, similar to Apple. Ethereum's wide range of hosted dApps is more comparable to Android due to its vast ecosystem.

It seems that Solana is the clear winner when it comes to the preference of traders for the two blockchains. Pal claims that Solana is capable of doing almost anything Ethereum can. Pal said that Solana "feels super-fast, slick and inviting for the user". He also gushed over the ingenious design of Phantom Wallet, which is the most unhosted Solana Wallet.

The praise of Solana by industry leaders is a testament to the widespread consensus about the cryptocurrency's importance, particularly in light of its price recovery after the FTX event. Raoul Pal and other investors have been impressed by Solana, which has reached its highest price since 2023.

Bybit, third largest crypto exchange in terms of volume, has shared insights on trading trends in crypto based upon the platform's own data. The report "Navigating Bull and Bear Markets - A Dive into User's Allocation" gives a general overview of the strategies used by institutional, VIP and retail investors between December 2022 and September 2023.

The main finding is that institutional investors (INS) have increased their Bitcoin holdings by over two-fold. This group's transition to BTC accelerated in 2023's third quarter. INS allocated about half their portfolio to Bitcoin and Ether at the end of September. The graphs below show that this pattern is quite different from the other two cohorts included in the report.

Retail and VIP traders are moving their money away from leading cryptos and into stablecoins. INS, on the other hand has been deploying stablecoins for BTC in Q3 of 2023. Bybit's report states that retail crypto traders tend to decrease their stablecoin investment during bull markets, and increase them during bear markets or calm periods. This suggests a risk-aversion. INS holders also show good timing when they switch stablecoins into leading cryptos during a downmarket.

Retail investors, who make up all three cohorts, have shown a cautious attitude towards altcoins. However, in July they experienced a sudden shift in mood, and increased the share of altcoins in their wallets to over 40%. Investors from institutions consistently have little faith in the performance of altcoins, with a clear downward trend - except for a small spike in July.

Bitcoin's value surged after Federal Reserve Chair Jerome Powell addressed Spelman College, Atlanta, Georgia. Powell stressed the Fed's commitment in reducing inflation to just 2%. Powell's cautious tone was accompanied by a positive outlook for the U.S. and its progress in reducing inflation, which boosted risk assets sentiment. Some financial commentators, like The Kobeissi Letter remained cautious regarding the Fed's actions in the future. Bitcoin benefited from the positive sentiment by breaking through resistance levels. Market analysts expect further gains, with price targets exceeding $39,000 by the time of the next Federal Open Market Committee meeting in mid-December.

James Seyffart, an ETF analyst, revealed that the recent Bitcoin surge was also tied to a window of official approval for a Bitcoin ETF. The window is set between January 5 and 10. The announcement of a spot Bitcoin ETF has sparked excitement among the cryptocurrency community. Potential approval orders are expected to be issued on Jan. 8, 9 or 10. Seyffart speculated about Gary Gensler, the chair of the committee. He suggested that there was a small chance for a delay. This is also attributed to increased institutional demand. Influential investors and changing economic conditions are fueling the optimism. The combination of this with the expected rate cut creates favorable conditions to see another bull run on the cryptocurrency market.

Bitcoin Bulls Surge As Fed Chair Jerome Powell Maintains Caution

The cryptocurrency markets reacted to Jerome Powell's appearance at Spelman College. He spoke with a wide range of people about the U.S. economic situation and inflation. Bitcoin, which was already strong, has managed to overcome resistance and rise higher than expected.

Powell's Cautious Tones

Powell's speech was cautious, highlighting the Federal Open Market Committee (FOMC) commitment of reducing inflation at the target rate to 2%. Powell said, "It is premature to conclude that we are at a restrictive enough stance or speculate when policy may ease." His remarks, while measured, appeared to boost the risk asset sentiment.

Market Reactions vary

The Kobeissi Letter is a financial commentary resource that offers a sober outlook on the Fed's actions in the future. It noted that this narrative has remained constant since last year. The Kobeissi Letter, which is a financial commentary resource, offered a sober perspective on the Fed's future actions, noting that their narrative had remained consistent since last year.

Bitcoin capitalizes on sentiment

Bitcoin, however, took advantage of the opportunity that Powell's remarks presented, as opposed to its previous muted response to the U.S. macroeconomic release data released earlier in the week. Bitcoin's reaction was quick, but it also showed resilience and bullish momentum.

Meeting of the FOMC to be held soon

The Federal Reserve is expected to announce changes in interest rates at the next FOMC meeting, scheduled for mid-December. CME Group's FedWatch Tool data shows that market expectations as of December 1st were strongly in favor of a pause on interest rate increases.

BTC price targets soar

Daan Crypto Trades, a popular trader in the Bitcoin market, revealed the volume of liquidity experienced by the sell-side during Bitcoin's short ascent to 39,000 dollars. Keith Alan, cofounder of trading resource Material Indicators and a snapshot BTC/USDT liquidity after Powell's address, was able to share a snapshot. Notably, $39,000, $39,200, and $38,000 were significant resistance levels. There was also substantial support from buyers at these levels.

Market analysts and traders remain optimistic about Bitcoin's future. BitQuant predicted a strong signal with a close of the day above $38,000. Crypto Ed, founder and CEO of trading group CryptoTA, forecast Bitcoin's potential upside, which could reach at least $39200.

Bitcoin's performance is closely tied to global economic developments, which makes it a focal part of the changing financial landscape. Market participants are eagerly awaiting the December FOMC Meeting, where new insights into the Federal Reserve’s policy stance could shape Bitcoin’s trajectory in weeks to come.

BTC's soaring rally coincides with the anticipation of spot Bitcoin ETF approval

BTC is soaring to new heights as the world of cryptocurrency buzzes with excitement. This coincides with the eagerly awaited official approval window for an ETF that tracks Bitcoin. This long-awaited event could be a milestone for the crypto industry and has caught the attention of investors and analysts.

The Approval Window for Bitcoin ETFs has been Revealed

James Seyffart, an ETF analyst who has been a part of the crypto community for many years, recently shared some important information on the X social network. Seyffart claims that the U.S. Securities and Exchange Commission's (SEC) official approval window has been set from Jan. 5 to Jan. 10. Seyffart said that the U.S. Securities and Exchange Commission (SEC) has set a window of approval for a spot Bitcoin ETF between Jan. 5 and Jan. 10.

Seyffart said that while the crypto community is eagerly awaiting this historic decision, there's a 10% chance or less of a possible delay, if Gary Gensler takes an unconventional approach.

Seyffart proposed an alternative scenario where the SEC might not be fully prepared for such a significant step. In this case, the SEC could have been in talks with companies like ARK Invest or 21Shares about withdrawing their filing. They may have offered future assurances, or explored an alternative course of action.

Bitcoin's Surge: Factors behind its remarkable growth

Bitcoin's meteoric rise since 2023 is a result of several factors. These have all contributed to the renewed vigor in Bitcoin and its bullish sentiment. The optimistic outlook of influential investors, as well as the changing economic conditions are key factors.

This surge in price is largely due to the expectation of increased institutional demand. Experts in the industry have believed for a long time that increased Bitcoin adoption by financial titans such as BlackRock and Fidelity would propel the cryptocurrency price to greater heights. The growing institutional interest in Bitcoin, combined with the expectation of rate cuts, creates a perfect storm for a new bullish run.

Investors and crypto enthusiasts are watching these developments closely, as an approval of a Bitcoin ETF could lead to a flood new capital into the cryptocurrency market. As regulators and participants in the market await the SEC decision, the coming days of January could potentially change the future of Bitcoin.

Price Overview

Chart for BTC/USDT daily (Source: TradingView).

BTC was trading over the $38K key resistance level as of press time, following a slight gain of 0.21% throughout the last 24 hours. This slight gain was part and parcel of BTC’s positive trend it has been on for the past four weeks.

If the bullish momentum continues, the market leader may soon reach the resistance level of $40,000. If traders start to take profits, the cryptocurrency could retrace towards the immediate support at $38,000. Continued selling pressure may bring the value of the cryptocurrency down to the next support level, which is $36,880.