Hours before the US PCE data release, Bitcoin (BTC) price continues to seek buyers below $40,000. Altcoin investors remain cautious as the cumulative value drops towards $1.4 trillion, with uncertainty lingering over the duration of the market correction. The status of Solana (SOL) and Avalanche (AVAX) is of particular interest.
Solana’s price increase has anchored its Total Value Locked (TVL) above $1 trillion, currently at $1.3 trillion. Despite SOL Coin’s price nearing its all-time high, the TVL has a significant way to go, having approached $10 trillion at its peak in 2021. Solana’s network growth and value generation within its ecosystem need to accelerate to sustain beyond speculative surges linked to GSOL trust.
The competition has intensified since 2021, with numerous new layer1 mainnet transitions occurring in recent months. Solana’s daily chart shows the price remains below the rising support trend line from December, unable to breach this region without BTC’s permission. The key area is currently $90, which could turn into support and aim for the $100 trend line, potentially leading prices to target above $111.
Avalanche, one of Solana’s main competitors, hasn’t experienced as significant a recovery. Its potential disadvantage could be the lack of a Grayscale trust for leverage, which could turn it into an institutional plaything. Despite fierce competition, Avalanche holds significant competitive advantages due to its established ecosystem, unlike Solana’s new smart contract platforms.
The market is currently interested in new layer1 and layer2 solutions, which have become gateways to earnings, driven by airdrop hunters creating somewhat artificial activity. As for AVAX price, if the $31.5 region is not secured, a downward trend seems likely, with potential sales extending down to $18.8.
