Once the SEC approved the BTC Spot ETF, it was only a matter of time before a new BTC ATH appeared. As well as 11 spot ETFs, we also have new Dencun upgrades just in time for the Ethereum and Bitcoin halvings. Solana is in the middle of all this, and its price continues to rise.
So, let's see if Solana can reach a new ATH with the current market rally.
Tristan Frizza, CEO and Founder of Zeta Markets, talks about the current situation
Tristan Frizza, CEO and Founder of Zeta Markets, provided his thoughts on the current situation. He predicts that Solana will enter the top three blockchains sooner or later. Many indicators point in this direction. For example, increasing involvement in DeFi. Overall TVL once again reached $100 billion.
Another important thing he noticed was the number of Solana's daily transactions. Already more than the following transactions combined:
- Ethereum.
- Arbitrum.
- avalanche.
- Tron.
- BNB chain.
- Optimistic.
However, currently Solana cannot exceed 2,500 TPS. Theoretically, it can process up to 65,000 TPS (transactions per second). See the photo below.
Source: Solana Explorer
Additionally, Frizza expects SOL to remain above its previous ATH of $260. He based this observation in part on the proliferation of new wallets. This indicates that the user is actively using the network. According to him, daily trading volume on Solana DEX has exceeded $2 billion since late February.
He also said that Solana can continue to offer lower gas fees compared to Ethereum. Even after the Dencun upgrade. All these factors lead him to believe that a new SOL ATH will emerge.
Bitcoin Spot ETF
The Bitcoin Spot ETF didn't waste much time pushing up BTC prices. We are currently in uncharted territory. Bitcoin has begun its journey of price discovery. The latest ATH of $73,737.94 is just 3 hours away from the time of writing.
So let's look at the BTC Spot ETF in perspective. Currently, 900 BTC is mined per day. After the halving, it will drop to 450 BTC per day in just over a month. At the same time, BlackRock and Fidelity purchase 9,000 BTC per day. These are just two of the 11 spot ETF funds. In other words, a supply shock for Bitcoin is imminent. This will only put further positive pressure on BTC price.
conclusion
Solana is taking full advantage of this bullish competition. Although it is still well below its current ATH of $260, it is performing well. The current price has just reached $172. Tristan Frizza, CEO and founder of Zeta Markets, expects Solana to become a top three blockchain by market capitalization. However, it's not just Solana, the entire cryptocurrency market is skyrocketing. That's because the BTC Spot ETF is causing a BTC supply shock.
Disclaimer
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