KOL Opinion: Why Will SOL Experience a Price Increase at This Level?

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Author: gum

Translation: Deep Tide TechFlow

The reason SOL is rising from here is because no one is talking about it:

It has just broken out of a 4-month-long consolidation.

The main reason it broke out now rather than a month ago is that SOL is a token representing the health of the cryptocurrency market. It is a token that indicates whether cryptocurrencies have risk appetite. 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, causing trading volume to plummet. Any reasonable increase in trading volume could shift momentum upward.

The entry of powerful institutions and integration with DeFi and RWAs (@onrefinance, @PreStocks, @xStocksFi, @HastraFi); the Clarity Act will benefit Solana and $SOL the most.

Over the past 4 years, Solana has been one of the most volatile cryptocurrencies. It has fallen 70% from its all-time high, but still rose 12 times from the bear market bottom.

It is one of the few tokens in the previous cycle to set new all-time highs, and the only blockchain with a strong ecosystem of applications, users, protocols, and use cases.

Volatility has created many token holders who lack confidence in $SOL and are just chasing momentum. I believe the price action over the past few months reflects a shift in token ownership from short-term holders, traders, and tourists to long-term accumulators.

The Miami Accelerate conference marks public attention on achieving AI on Solana, so I expect a large influx of excellent AI developers next year.

Memecoins will continue to happen on Solana. No 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 dramatically, just like every past instance.

Even if market participants pay high fees, they will face the same types of users/traders on Solana, and perhaps they will finally realize that Solana simply facilitates the large-scale spread of memecoins, which requires products targeting this crowd, such as Axiom, trading bots, and others.