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AVAX Price Rally To Surpass Solana Price Surge: Santiment

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4 months ago

June 28, 2024

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Avalanche (AVAX) and Solana (SOL) prices have each seen over 7% rallies today, reflecting growing investor confidence in these cryptocurrencies. While a broader market recovery has boosted this uptrend, specific catalysts have played significant roles in their respective gains.

A notable Solana price surge, linked to new ETF developments, contrasts with a more subdued yet promising AVAX rise, which experts say could outpace Solana’s in the near future.

Solana Vs AVAX: Market Confidence To Dominate ETF Hype

Solana’s recent price rally has been largely driven by the announcement from VanEck, the first U.S. firm to file for a Solana ETF with the SEC. This move has ignited optimism among traders and analysts alike.

In addition, Bloomberg analyst James Seyffart’s prediction that the Solana ETF might be approved by 2025 further bolstered enthusiasm, leading to a significant influx of investor interest and price gains. Notably, the excitement around Solana’s ETF prospects underscores how powerful market sentiment and speculation can be in driving price action.

On the other hand, Avalanche (AVAX) has been capturing investor interest for reasons that extend beyond immediate ETF speculation. Recently, market expert Quinten identified AVAX among a list of cryptocurrencies likely to receive ETF approval by 2025.

Alongside Solana and Chainlink, AVAX was highlighted for its strong potential, fueling positive sentiment among investors who anticipate long-term gains from possible ETF endorsements. However, Santiment, a prominent on-chain analytics firm, provides a contrasting perspective on the two cryptocurrencies’ rallies.

Avalanche (AVAX) Vs. Solana (SOL) — Source: Santiment, X

Meanwhile, Santiment suggests that Solana’s current surge is fueled by a Fear of Missing Out (FOMO) among traders, which might not sustain long-term growth. In contrast, Avalanche’s quieter rally, which has not yet caught the broader market’s attention, may have more room to grow steadily.

This distinction could be crucial for investors considering which asset to back as the market evolves.

Also Read: Kraken Co-Founder Donates $1M In ETH To Donald Trump

What’s Next?

The developments around Solana ETF have demonstrated the profound impact that institutional interest and regulatory milestones can have on cryptocurrency prices. VanEck’s filing alone caused a noticeable spike in Solana’s price, showcasing the market’s sensitivity to regulatory progress and investor sentiment.

On the other hand, AVAX’s modest but steady price increase suggests a different dynamic. Its progress, somewhat overlooked by the mainstream cryptocurrency community, could indicate a more sustainable growth pattern. As noted by Santiment, the lack of immediate hype around AVAX might work to its advantage, allowing for a more organic rally that could persist longer than Solana’s FOMO-driven surge.

In addition, Santiment warned over market fluctuations, influenced by ongoing legal battles, like Coinbase lawsuit against the SEC and FDIC regarding document restrictions. These broader market conditions and legal uncertainties could affect both Solana and AVAX, making the need for careful monitoring of these factors crucial for potential investors.

Meanwhile, AVAX price was up 8.13% during writing and exchanged hands at $27.96, after touching a 24-hour high of $28.29. On the other hand, Solana price jumped 7.12% to $145.35, while its trading volume skyrocketed 122% to $3.15 billion. The crypto has crossed the $150 mark in the last 24 hours.

Furthermore, CoinGlass data showed that Avalanche Futures Open Interest rose nearly 5% from yesterday, while Solana’s Open Interest jumped about 7% to $2 billion.

Also Read: 21Shares Files Form 8A For Spot Ethereum ETF After VanEck