Both Avalanche (AVAX) and Solana (SOL) have enjoyed significant price increases in recent days, but analysts believe AVAX might be poised for a bigger surge. While Solana’s gains are linked to the excitement surrounding potential ETF approval, AVAX’s rise seems more grounded in long-term potential.
Solana’s recent rally can be attributed in large part to the news of VanEck, a major investment firm, filing for the first-ever Solana ETF with the SEC. This development has fueled investor optimism, with analyst James Seyffart’s prediction of a 2025 approval date further boosting enthusiasm.
However, experts warn that Solana’s price surge might be a classic case of Fear of Missing Out (FOMO) and may not translate to sustainable growth. In contrast, Avalanche’s quieter rise, overlooked by the mainstream market, could indicate a more long-lasting trajectory.
Sentiment, a leading on-chain analytics firm, highlights this key difference. They believe Solana’s surge is fueled by short-term hype, while Avalanche’s more measured growth suggests room for steady appreciation. For investors, this distinction could be crucial when deciding which cryptocurrency to back.
The recent developments surrounding the Solana ETF showcase the immense influence of institutional interest and regulatory milestones on crypto prices. VanEck’s filing alone caused a significant spike, demonstrating the market’s sensitivity to such factors.
Avalanche, on the other hand, seems to be charting a different course. Its price increase, while less dramatic, might be indicative of a more sustainable growth pattern. The lack of immediate hype, as pointed out by Santiment, could be a positive for AVAX, allowing for a longer-lasting rally compared to Solana’s FOMO-driven surge.
However, investors should remain cautious. Legal battles like the ongoing lawsuit between Coinbase and the SEC can trigger market fluctuations that impact both AVAX and Solana. Careful monitoring of these external factors is essential for informed investment decisions.
Currently, Avalanche sits at $27.96, having reached a 24-hour high of $28.29. Solana, meanwhile, is trading at $145.35, with its trading volume surging by 122%. Both cryptocurrencies have witnessed rising futures open interest, indicating continued investor activity.
While Solana basks in the spotlight of a potential ETF, Avalanche seems to be building momentum for a more long-term price rally. Only time will tell which cryptocurrency emerges victorious in this intriguing race.