Cryptocurrencies Bitcoin, Ethereum, and Solana Sparking Interest Among Traders: What’s Happening?
Last week saw a turnaround in the cryptocurrency market after a period of stagnation for Bitcoin, Ethereum, and Solana prices. Ethereum managed to recover from losses, climbing back from the $3,000 mark. Meanwhile, Bitcoin and Solana also experienced upward momentum, nearing $70,000 and $200, respectively.
Data from Santiment indicated a surge in interest towards Bitcoin, Ethereum, and Solana towards the end of the week despite overall market weakness. This renewed interest was reflected in a noticeable increase in trading volume for these top coins. Typically, a rise in trading volume suggests growing curiosity among market participants, particularly when prices are on the rise. With these key cryptocurrencies holding firm and resisting losses, buyers were actively participating in the market, seeking opportunities for gains.
The performance of Bitcoin, Ethereum, and Solana often has a significant impact on the broader cryptocurrency market. For instance, a rally in Ethereum could benefit the wider layer-2 and 3 ecosystems, leading to increased activity in meme coins and decentralized finance (DeFi) projects.
Various factors contributed to the heightened interest in these cryptocurrencies. Bitcoin saw a shift in regulatory sentiment and increased political endorsements, particularly in the United States, which sparked curiosity among potential investors. Former President Donald Trump’s supportive stance on Bitcoin during a recent conference further fueled interest in the cryptocurrency.
Ethereum garnered attention following the approval of spot exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC). Although these ETFs began trading on major exchanges like NYSE and Cboe, the inflow of funds remained relatively low. Notably, spot Ethereum ETFs experienced outflows for three consecutive days, primarily driven by outflows from Grayscale’s ETHE. In contrast, BlackRock’s spot Ethereum ETF witnessed significant inflows of over $87 million on July 26.
Solana also made headlines as it surpassed Binance Coin (BNB) to become the third most valuable cryptocurrency, excluding stablecoins. With a market cap of $88.5 billion, Solana outperformed BNB’s $86.5 billion market cap as of July 29. Over the past few weeks, Solana has been on an upward trajectory, with a 56% increase from its July lows. If buyers breach the $200 mark, Solana is expected to reach new highs in the third quarter of 2024.
