Crypto: Solana, Stacks and NEAR boosted by hype, should we fear a crash?

Boosted by an unbridled speculative appetite, Solana, Stacks and NEARprotocol have seen their online visibility explode recently. Their mentions on the networks have reached the peak, reflecting a crypto frenzy amplified by the fear of missing out (FOMO). However, this runaway also carries the threat of a sudden reversal.

Solana, Stacks and NEAR in speculative fever

Solana, Stacks and NEAR Protocol are among the hottest cryptos in recent days, with social volumes surging sharply. According to Santimentthis dynamic reflects overwhelming speculative interest and a FOMO phenomenon likely to lead to overvaluation and a sudden reversal of prices.

Driven by a thriving DeFi ecosystem, the SOL token overtook XRP in the ranking of cryptos by capitalization, reaching 33.7 billion. The total value locked on Solana also crossed the symbolic billion-dollar milestone for the first time since the FTX collapse.

DEXs like Orca are recording record volumes, amplified by the craze around the same places like Bonk. Lured by the promise of quick gains, traders buy SOL before converting it into speculative tokens, fueling an upward spiral.

However, some experts are warning of a possible 40% crash by the new year.

Ethereum losing momentum in the face of the rise of Solana?

While ether suffers from high transaction fees, its detractors are already predicting its death in favor of competing chains such as Solana.

However, Ethereum’s fundamentals remain strong, with $28 billion in value locked and apparent undervaluation. Its volumes of decentralized exchanges and NFTs also still far exceed those of Solana.

Certainly, the latter is making a notable breakthrough, with DEX, stablecoins and NFT volumes temporarily surpassing Ethereum. Some already imagine Solana “overturning” the historic blockchain in the long term. However, this scenario seems premature: Solana still only represents 5% of Ethereum’s TVL.

While Solana’s current success is undeniable, any sharp bearish reversal remains possible given the levels of speculation. As for Ethereum, its solid fundamentals remain a guarantee of long-term resilience, despite current challenges.

Towards a reversal of the crypto market?

Beyond Solana, Stacks and NEAR also benefited from this speculative frenzy, with double-digit increases in their social volumes.

This unbridled appetite for crypto risk, disconnected from fundamentals, reflects a generalized enthusiasm. Like the media hype surrounding memecoins on Wall Street, it exposes the market to a violent swing of the pendulum.

In short, although promising, Solana and others could quickly become pariahs again if this speculative bubble bursts. To navigate this volatile market, prudence and rationality are essential, rather than succumbing to the sirens of herd thinking.