Solana rally continues in memecoin activity and DeFi. Ether’s implied volatility surpasses Bitcoin.
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According to the founder of the decentralized exchange, the recent sustained price rise continues to be driven by Memecoin transactions on the network.
Zeta Markets founder Tristan Frizza said the increase in token value was largely driven by increased memecoin trading activity on the Solana network. “Memcoin has clearly become an important driver of Solana activity. It goes beyond speculation and demonstrates Solana’s ability to handle high transaction volumes with low fees, creating the perfect environment for retail users.” Frizza told The Block.
To illustrate this, Frizza pointed to on-chain metrics such as Solana’s total value locked (TVL) exceeding $4.9 billion. “This signals strong network activity, with the number of active users continuing to grow, with monthly active addresses reaching an all-time high of 41.65 million in May,” Frizza added.
According to The Block’s pricing page, Solana is up more than 5% in the last 24 hours and is trading at $174.83 as of this writing.
Solana grows with DeFi growth
According to a Bitfinex Alpha report this week, the Solana DeFi ecosystem is experiencing clear growth in lending, liquid staking, and perpetual markets.
“This resurgence of Solana is due to the advantages it offers over other blockchains in terms of transaction throughput per second and scalability. Both Solana and Ethereum continue to grow, but Solana’s rise is noteworthy. If TVL chooses Solana, a Bitfinex analyst said: “More “As many users find utility in the blockchain, it ranks second in terms of decentralized exchange volume by chain, four places behind Ethereum,” he said.
Ethereum exhibits higher implied volatility than Bitcoin.
Ethereum, the top cryptocurrency market capitalization, is expected to experience greater price fluctuations than Bitcoin this month. Ethereum options hint at volatility, according to QCP Capital analysts. (IV) is currently higher than Bitcoin. This indicates that traders are expecting Ether price movements to increase in response to the upcoming launch of a spot Ether exchange-traded fund (ETF).
“The strength is likely to continue as the market waits for spot ether ETFs to bring in new demand,” QCP Capital analysts said. “The options market certainly reflects this, with Ether IV still trading at 15% of Bitcoin volume.”
Block Scholes research director Andrew Melville observed that Ethereum’s price fluctuations have been greater than Bitcoin since mid-May, highlighting the largest volatility gap between the two tokens since the FTX collapse in November 2022.
“The higher premium assigned to volatility reflects increased uncertainty, especially in the near term, with a potential update to the Ether ETF application coming soon. However, unlike the recent rally, there is not much demand for Ether to rise quickly. As for market sentiment, Melville said, “Both Ethereum and Bitcoin appear to be cautiously optimistic as they have similar positioning in the near term.”
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