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What’s Going on with SOL, ETH, ADA? Are They Headed Higher?
The crypto market is on the rebound after a wintry nearly two years. There are several explanations for that, including the prospects of a spot Bitcoin ETF being realer than ever.
ETH, SOL, and ADA are among the coins demonstrating a bullish trend. These coins not only rank within the top 10 in market capitalization but also share a common attribute: they support a smart contract environment and decentralised applications (dApps).
Many investors want to know what’s the deal with these coins and what they can expect as we gear up for the next bull run. Let’s dive in.
The Market is Bouncing Back
The cryptocurrency market seems to be riding the wave of the spot Bitcoin and Ethereum ETF news to stage a comeback. The market’s capitalization hit $1.44 trillion in early November — its highest level since 2022’s market slaughter after the unravelling of the algorithmic stablecoin Terra Luna.
BTC surged to its highest price point since then, capping off at around $37,444. ETH, SOL, and ADA are some of the other altcoins exhibiting bullish behaviour.
ETH, which is the second biggest cryptocurrency, breached the $2,000 mark for the first time since April, with ADA and SOL gaining by nearly 40% and 77% in the period from October 22 to November 22, per historical data by Yahoo Finance.
Notably, ADA and SOL seem undeterred despite the Securities Exchange Commission (SEC) declaring them securities in June in lawsuits against Coinbase and Binance. SOL is particularly on a tear — securing gains of over 250% since then.
Other cryptocurrencies that are surging in price include Dogecoin, which is up 33.2% in the past month, and Avalanche, which is up 147%.
Is Bitcoin ETF News the Reason for the Market’s Rebound?
But it’s not just the ETF news fuelling optimism in the market, says Oleg Giberstein, co-founder and COO of Coinrule, a Y Combinator-backed crypto trading platform. He attributes it to the end of interest rate hikes, which have paved the way for the “risk-on-assets market to come back.”
Giberstein predicts the market will sustain this upward trajectory now that “a lot of crypto dead-wood such as FTX has finally been put behind us,” alluding to the conclusion of FTX’s former CEO Sam Bankman-Fried’s trial.
Another reason the market will continue to rise is that “the case against Binance has concluded, and this has removed a big unknown variable,” he says.
What Sets ADA, SOL, and ETH Apart?
For investors eyeing ETH, SOL, or ADA, it’s natural to wonder if these coins will be able to sustain that momentum after the ETF hype dies down. Luckily, these three coins have proven to have staying power.
- Ethereum has first mover advantage for being the first cryptocurrency project that enabled developers to create dApps powered by smart contracts. This initial breakthrough has made it the longstanding king of altcoins, despite scores of projects springing up over the years that do exactly what it does, even cheaper and faster.
- Solana is known for its high-performance blockchain that enables fast transaction speeds and low fees compared to other smart contract blockchains, including Ethereum. The Solana blockchain can support up to 50,000 transactions per second (TPS) at an average cost of $0.00025, while Ethereum can muster only 15 TPS with average transaction fees of $1. This efficiency has made Solana an attractive destination for devs in decentralised finance (DeFi), NFTs, and gaming spaces.
- Cardano is also a third-generation blockchain whose claim to fame is its founder, Charles Hoskinson, being one of the co-founders of Ethereum, and being the only peer-reviewed cryptocurrency project. Cardano is much like Solana and Ethereum in function but has been surpassed by the more recent Solana in throughput capabilities. Hoskinson has, however, sought to position Cardano as a platform where developers can build sophisticated dApps, as opposed to being a competitor in the speed stakes.
What’s the Investment Outlook for ADA, SOL, and ETH?
When considering ADA, SOL, and ETH for investment, their established market presence and community presence makes them relatively safe choices in terms of risk profile.
When it comes to profitability, Giberstein is uber-bullish for Solana. “To me, Solana is probably one of the top projects to watch going into this new bull market cycle.” He says Solana is the “rising star” of the last few weeks, having “weathered the storm” of the FTX collapse. FTX was closely linked to Solana, with the latter taking a beating after the exchange’s implosion.
Indeed, SOL’s performance this year has defied expectations. It seems to have put the cloud of its association with FTX well and truly behind it, and the community’s support and enthusiasm seem steady.
ADA and SOL are currently almost neck and neck in market rank, signalling their equal market clout. Both projects have a dedicated community.
Crypto influencer Jason Appleton believes that Cardano’s strong community, combined with Hoskinson’s continuous public updates explaining the technology, “adds a personal element to the grand structure that Cardano is,” which he says will continue to propel the project forward.
For its part, ETH has always been a strong contender as a crypto investment, with the Merge and upcoming protocol rollouts only poised to solidify its place in the crypto landscape.
Then there’s the fact that Ethereum is likely the second-best choice after Bitcoin for newcomers and risk-averse crypto enthusiasts. That’s to say that while Ethereum might seem a little old school, it’s still very much in play as a lucrative investment option.
Final Thoughts: The Second Coming?
While the ETF news has played a role in the current market resurgence, it’s evident that the market being finally able to breathe after a few setbacks is another factor.
ETH, ADA, and SOL are three of the most exciting coins to look out for. These coins have a strong product and an even stronger community that positions them for success way after the Bitcoin and Ethereum ETFs buzz fades out.
