Author: gum

Translation: Deep Tide TechFlow

The reason SOL is rising from here is that no one is discussing it:

It has just started to break out from a 4-month consolidation.

The main reason it is breaking out now instead of a month ago is that SOL is the token representing the health of the cryptocurrency market. It indicates whether there is a risk appetite for cryptocurrencies. The current trend is pricing in the return of risk.

Strong holders have regained control of the token, while traders and speculators have abandoned it, leading to a sharp decline in trading volume. Any reasonable increase in trading volume will lead to a shift in momentum upwards.

Powerful institutions are entering and integrating with DeFi and RWAs (@onrefinance, @PreStocks, @xStocksFi, @HastraFi); the Clarity Act will benefit Solana and $SOL the most.

Solana has been the most volatile cryptocurrency over the past 4 years. It has fallen 70% from its ATH but has still risen 12 times from the bottom of the bear market.

It is one of the few tokens that set a new ATH in the last cycle and is the only blockchain with a strong ecosystem of applications, users, protocols, and use cases.

Volatility has created a lot of holders of $SOL who lack conviction and are just chasing momentum. I believe that the price movements over the past few months represent a shift in token ownership from short-term holders, traders, and tourists to long-term accumulators.

The Miami Accelerate Conference marks public interest in realizing AI on Solana, so I expect a large influx of excellent AI developers next year.

Memecoins will continue to happen on Solana. No other chain is more suitable for this. You might have a different view because of Asteroid, but just one day of on-chain volatility can cause transaction fees to spike significantly, just like every time in the past.

Even if market participants pay high fees, they will face the same types of users/traders present on Solana, and maybe they will finally understand that Solana has only facilitated the massive proliferation of memecoins, which requires products tailored to that crowd, such as Axiom, trading bots, etc.