Between Trump signing more pro-crypto executive orders and treasury companies top-blasting majors, markets are awash with optimism and borderline euphoria.
Bitcoin and Ethereum are within a stone’s throw of record prices, soliciting cries for “All-Time High August” across CT.
Can $SOL keep up the momentum, and which ecosystem tokens are catching a bid?
Crypto markets are on a tear this week, with large-cap altcoins putting in double-digit gains on a weekly timeframe across the board. According to Coinglass and Ranger Finance data collected over the last 24 hours, Solana-based trading pairs have executed over $59M in short liquidations, sending $SOL over $200.
With so many bullish tailwinds pushing crypto adoption forward, it’s difficult to pinpoint what exactly is driving the surge of demand for digital assets.
On August 8, President Trump signed an executive order enabling 401k investments, a market worth over $12T, to hold crypto assets. This change is the most recent of many pro-crypto regulatory advancements, which include the passing of the GENIUS and CLARITY acts during Congress’s “Crypto Week” in mid-July.
Meanwhile, crypto treasury companies are telegraphing eye-watering buys, making fundraising announcements that are begging traders to frontrun them. Bitmine Immersion Technologies (BMNR), an Ethereum Treasury company holding 1.15M ETH, recently announced its plans to sell up to $20B worth of common stock to support further $ETH accumulation.
While Bitmine’s raise doesn’t directly affect Solana, its confidence in crypto markets lends credibility and bullish momentum to the industry as a whole. Pioneered by Micheal Saylor and Strategy, TradFi firms are now locked in a fierce arms race to accumulate as much crypto as possible, with crypto treasury companies reportedly holding $95.8B in NAV.
Among treasury companies, Upexi is currently the largest holder of $SOL, boasting over 2M $SOL valued at $393M.
Flourishing sentiment and prolific green candles have many market participants calling for the fabled “Alt season”. Traders are adamant that liquidity will follow historical trends, flowing from Bitcoin, to Ethereum, and large-cap majors before pumping micro-cap altcoins.
Courtesy of recent price action and Bitcoin’s relentless dominance, many market commentators have declared that crypto markets will never see the altcoin seasons of yesteryear. However, alt season advocates now argue that history could still repeat, albeit on longer time horizons.
Historical market data suggests we could be on the cusp of significant capital flows into smaller coins. According to TradingView data, neither Bitcoin Dominance nor OTHERS has reached the dizzying extremes of 2021, suggesting there may still be time for alt season in this cycle.
Buoyed by the $SOL price surge, Solana ecosystem tokens are outperforming the market as traders look for profitable beta plays. DeFi applications are leading the charge among Solana-native protocols, with $RAY, $KMNO, and $ORCA up 44%, 31%, and 28% respectively on a 7D timeframe.
Why is everyone shilling p-token?
