Hours before the announcement of the US PCE data, the BTC price continues to find buyers under $40,000. While altcoin investors remain cautious with the cumulative value dropping to $1.4 trillion, it’s uncertain how much longer the correction will last. So, what is the current situation with Solana and Avalanche?
Solana (SOL)
Solana‘s price increase has anchored the network’s total value locked (TVL) above $1 trillion. Today, the TVL was at the $1.3 trillion mark. Despite the rising SOL Coin price, there is still a long way to go to reach the 2021 peak, which was close to $10 trillion. Even though the price has recently approached the all-time high (ATH) level, TVL has not come close to it.
For Solana’s network growth to accelerate, the protocols within its ecosystem need to generate more value. Otherwise, the possibility of not moving beyond speculative surges linked to the GSOL trust should not be disregarded. Moreover, competition today is much fiercer than in 2021. In the past months, many new layer1 mainnets have been launched.
On the daily chart, the price continues to stay below the rising support trend line that started in December. BTC has not allowed the price to even attempt to surpass this region. The key area is currently $90, and if it turns into support, the $100 trend line could be targeted next. If this happens, the price could aim for $111 and above again.
Avalanche (AVAX)
Avalanche, one of Solana’s biggest competitors, has not experienced as significant a recovery period. Perhaps what’s missing is a trust like Grayscale that could be leveraged by institutions, turning it into their plaything. Despite having many competitors, they have serious competitive advantages due to their already established ecosystems, even against Solana and its new smart contract platforms.
Today, the market’s interest in new layer1 and layer2 solutions has primarily turned into profit gates that create a sort of fake activity for airdrop hunters.
Turning to the price front, it seems that the decline will continue unless the $31.5 region is securely held. After $27.3 and $23.4, sales could continue down to $18.8.
