Solana (SOL) is gaining momentum, showing signs of outpacing Bitcoin (BTC) as its trading volumes soar and technical indicators turn bullish.
SOL/BTC Technical Breakout Signals a Bullish Shift
The SOL/BTC trading pair recently broke out of a prolonged consolidation, surging by more than 1% last week. This breakout from a narrowing price range, often referred to as triangular consolidation, suggests that the bulls are now taking charge after months of market indecision. With this shift, a continued upward movement in SOL’s price seems probable.
Additionally, the Moving Average Convergence/Divergence (MACD) histogram has crossed above zero, signaling a strengthening bullish trend. This technical pattern supports the idea of sustained momentum for Solana, potentially outpacing Bitcoin in the near term.
Strong Fundamentals Back SOL’s Bullish Outlook
Solana’s growing appeal, especially among retail traders, is evident in its record-breaking trading volumes. While discussions continue about whether Solana could surpass Ethereum as the top smart contract platform, one thing is certain: Solana is becoming the go-to blockchain for trading memecoins.
According to data from Artemis, Solana-based decentralized exchanges (DEXs) saw a record $41.6 billion in trading volume in the seven days leading up to November 17. This is more than double the previous week’s volume and outpaces Ethereum’s DEX trading volume of $14.3 billion, as well as combined volumes from Base and Binance Smart Chain (BSC), which totaled $37.9 billion.
Solana’s Fee Revenue Competitive with Ethereum
Notably, Solana is also performing well in terms of fee generation. The Solana-based DEX, Raydium, generated $72.83 million in fees over the past week, 8% more than Ethereum’s $67 million in fees. In comparison, Bitcoin only generated around $15 million in fees.
These numbers suggest that Solana’s decentralized finance (DeFi) ecosystem is growing at a rapid pace, positioning Solana as a major player in the market and potentially making it an attractive alternative to Bitcoin.
Looking Ahead
With strong technical indicators, increasing trading volumes, and competitive fee generation, Solana appears set to continue outperforming Bitcoin in the coming months. As more investors flock to Solana, its price could rise further, strengthening its position in the crypto market and making it a key player to watch moving forward.
