Solana captured nearly half (49.3%) of global investor interest in blockchain according to Coingecko.
Solana's growth is attributed to new projects, memecoins like BONK and WIF, and reaching highs not seen since 2021.
Ethereum remains a strong competitor (12.7% interest) due to its first-mover advantage and established Layer-2 ecosystem.
Investor focus is shifting from Ethereum to Layer-2 networks (Arbitrum, Optimism) due to lower fees.
BNB Chain comes in third (5.4% interest) with strong growth in Q1 2024, but Solana's fundamentals remain bullish long-term.
As time leads us further into 2024, the blockchain and web3 landscape is changing so rapidly, that investors have to know exactly where to plant their feet.
According to a recent report from Coingecko though, we might be sitting on top of a bullish goldmine, named Solana.
According to this report, Solana has captured and is holding the attention of nearly half the world’s blockchain/crypto investors.
In particular, Solana currently holds around a staggering 49.3% of investor interest, according to data collected between 1 January this year, and 18 March.
Solana, according to the report, has seen significant growth in 2023 and 2024 particularly, reaching highs not seen since 2021.
Coingecko attributes this growth on Solana to the new launch and development of key ecosystem projects like Pyth, and the launch of several successful memecoins on Solana, like BONK and WIF.
Leading Blockchains
The chart above clearly shows the massive margin Solana has against others like BNB, Cosmos and even Ethereum itself.
The report also shows us that while Solana is in the lead, Ethereum remains a strong competitor, securing second place with 12.7% of investor interest.
Ethereum’s success in this metric is likely based on its “first mover advantage”, and its well-established ecosystem of Layer-2 chains like Arbitrum, Optimism and Base.
Speaking of Layer 2 networks, Coingecko notes that there is a noticeable shift in investor focus from Ethereum itself, to the Layer 2 networks built on top of it.
This may be due to the massive 90% fee reduction in Layer 2 networks, brought on by the Dencun upgrade on 13 March.
Trailing behind, Binance’s BNB chain came in at third place, with 5.4% of investor interest.
This position on BNB is largely credited to the massive growth of BNB, specifically in Q1 of 2024.
According to data from TradingView, BNB has rallied by around 150% this year alone, as shown below.
BNB’s growth in the last year
The report also shows that Layer-2 networks, particularly Arbitrum and Base have also been strong contenders when it comes to investor interest.
Both of these chains have garnered around 3.3% and 3.2% of interest, respectively, adding another feather to Ethereum’s cap.
Both of these Layer 2 networks also have the largest TVLs according to Defillama, with Arbitrum being the stronger of the two.
Solana is currently in a decline along with the rest of the market, judging by its price rejection from around $210 on 18 March.
The cryptocurrency is headed for a retest of the middle Bollinger band (Orange) around $160, as shown below.
Solana’s price action
Considering how this band has provided relatively strong support for Solana throughout 2024, we can expect the cryptocurrency to go no lower than the $152 support.
Depending on the strength of the bulls around this price level, we can expect Solana to rebound and attempt to reclaim $210.
However, the only downside to this is that if we see a break below the $152 support, Solana will inevitably retest the $126 resistance, before launching this rally towards $210.
Overall, the short-term outlook for Solana may be slightly shaky, however, its medium to long-term outlooks seem strongly bullish, and Solana's fundamentals align with its technicals, likely more than any other cryptocurrency on the market.
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