Solana, Avalanche Beat Odds as Market Sentiment Turns Neutral
Neutral Sentiment Returns to Crypto
The crypto market is currently in neutral territory with the ‘Fear and Greed Index’ at 55, just 5 points below greed. Before the Spot Bitcoin ETF decisions in early January, the index neared extreme greed, almost 20 points higher.
The cooling down of investor sentiment comes as the Spot Bitcoin ETFs failed to deliver new all-time highs amid solid trading of the new products in the first few days. Meanwhile, Bitcoin trades at USD $42,051 (AUD $63,810) which marks a slight increase week-on-week of 1.7% but a small loss in the past 24 hours with minus 0.24%.
Solana Eyes USD $100 Again
Solana (SOL) is one of the few cryptos in the green at present, gaining 1.6% in the past 24 hours and 5% in the past seven days.
Trader Michaël van de Poppe suggests Solana is poised for an upward continuation after its initial surge. Typically, after an initial push, there’s a phase of consolidation, and it seems that period has concluded for Solana. Van de Poppe points out that recently, it tested the higher timeframe support at USD $80 (AUD $121), which held firm, suggesting a robust support level. Given these factors, there’s a strong likelihood that Solana’s value could continue its upward trajectory, potentially reaching the USD $140 (AUD $212) mark according to the trader.
On a more fundamental level, it’s possible that Solana’s strong fundamentals have not changed and that we are just seeing a correction after the whole market has crashed – it remains to be seen if this is a trend reversal and can persist.
Avalanche Continues to Grow on The Back of Gaming
Avalanche (AVAX) is the biggest gainer among the top cryptos, gaining almost 10% from last week and 3% in the past 20 hours alone. AVAX currently trades for USD $35.15 (AUD $53.30) as data from CoinMarketCap shows.
A potential reason for the surge in AVAX is Vryx, a platform designed to scale blockchain networks for larger transactions without losing security or decentralisation. Vryx utilises a novel method called Decoupled State Machine Replication (DSMR), which speeds up transaction processing by organising and distributing transactions before validating them. This approach allows for more simultaneous transactions and improves efficiency. Additionally, Vryx enhances security by ensuring all transactions incur fees, thereby mitigating certain types of attacks. The platform is set to debut on the HyperSDK testnet, with plans to extend to other Avalanche Virtual Machines.
Another reason for AVAX’s solid performance is the increased use of the Avalanche Subnet in the gaming realms which is continuing to grow.