Connect with us
Active Currencies 14820
Market Cap $2,360,907,242,651.50
Bitcoin Share 51.17%
24h Market Cap Change $-3.98

How Bitcoin, Solana eased market pressure on its price predictions

3min Read

Market participants are unfazed by a little downside, and focused on the positive movements.

Bitcoin news alongside Solana news

Share this article

  • DEX volume on Solana increased, helping the total spot volume to $96 billion.
  • BTC outperformed other assets as a spot ETF could be approved.

The month of November proved to be crucial for the crypto market considering the sideways movement it had in the previous month. According to Messari’s insights, the monthly trading volume closed in on $1 trillion.

The value represents a 17% Month-on-Month (MoM) increase, thanks to the likes of Bitcoin [BTC] and Solana [SOL].

A few weeks ago, AMBCrypto reported how these cryptocurrencies have been outperforming traditional assets. This was also confirmed by the blockchain intelligence firm.

Bitcoin's peformance against Solana, Ethereu, S&P 500

Source: Messari

Low-cap tokens trigger DEX volume

During the period, spot volume on Decentralized Exchanges (DEXes) rose from $61 billion to $96 billion. Messari, in its report, opined that:

“This surge means that DEXs now account for 10% of the total exchange volumes, marking their highest proportion of the market share since June. The increase can be attributed to the growing demand for meme coins and low-cap projects.”

One of the reasons the DEX volume increased was because of the Solana ecosystem. In November, there were a lot of low-cap tokens that performed well on Solana. So, this lured market participants to continually provide liquidity for the network. 

As a result, Solana was able to gain a substantial share of the DEX market which Ethereum [ETH] almost always dominated.

Also, there are some airdrops including Jito and Jupiter coming on Solana. Should more projects announce more rewards for users, Solana’s DEX volume may continue to surge.

Solana DEX volume

Source: Messari

This information may not be surprising to AMBCrypto readers. At different points, we discussed Bitcoin and Solana’s impact on the market. On some occasions, we discussed how Bitcoin led inflows per investment product.

Solana, apart from ETH at one point, was also the top altcoin with millions of dollars allocated to its investment products. 

The market ignores the persecution 

Furthermore, the optimism around a potential Bitcoin ETF approval increased. Because of this, buying pressure increased as the coin traded above $40,000. This led Messari to conclude that:

“The next decision deadline for Blackrock’s spot Bitcoin ETF is January 10. Also, leading ETF analysts are projecting a high likelihood of approval, estimating the odds at 90%.”

However, Bitcoin and Solana were not the only ones in the spotlight. Ethereum had a share of the good side. This was because BlackRock filed to an Ethereum spot ETF. While there was glad tiding, there was also a downside.

But this time, it involved Binance, the largest Centralized Exchange (CEX)in the world.

The U.S. government fined Binance $4.3 billion alongside other sanctions. However, the Fear Uncertainty, and Doubt (FUD) after the settlement was only short-lived despite plunging Binance’s market share.

Binance spot volume after the SEC case

Source: Messari

In addition, market players did not see any reason to halt the positive momentum because of the incident. So, other exchanges like Upbit, Bybit, and Coinbase experienced a surge in volume.

Realistic or not, here’s SOL’s market cap in BTC terms

Considering the present state, the crypto market cap has the potential to increase far beyond $1.58 trillion.

Also, the sector could become more mainstream. This is because of the growing number of traditional institutions aligning with Bitcoin.


Victor is a full-time journalist at AMBCrypto. Before his sojourn into the world of journalism, he was a “buy the top, sell the bottom” merchant while doubling as a sales funnel copywriter. Victor’s focus is the exciting on-chain landscape of the cryptocurrency market and its underlying technology. His other interests include politics, Afrobeats, sports, and marketing.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.