Today in Markets

Solana's Altcoin Saga

SOL is pumping, but a few Solana altcoins are taking a break from the action
Dec 21, 20231 min read

'Round and 'round. Solana has dominated the charts lately, continuing to be one of crypto’s strongest-performing assets with 24% gains on the week. While the SOL token is pumping, more than a few of the ecosystem’s tokens have decided to take a break from the action. What happened to Solana alt szn?

For example, the culturecoin BONK, a token some see as a levered bet on Solana, enjoyed a burst of strength against SOL off its Coinbase debut late last week, but the BONK/SOL ratio proceeded to get crushed since then and is down 36% from its Friday close.

Demonstrating a similar pattern of weakness is LST governance token JTO, which has fallen 35% against SOL over the past two weeks after the hype surrounding the token’s launch diminished after just two short days.

Solana-native oracle network Pyth finds itself in a similar situation, with the PYTH/SOL ratio declining a staggering 50% since peaking in late November on four days of post-launch FOMO.

While the underperformance rut every Solana alt seems to eventually get stuck in is no doubt disappointing for holders, they’re not alone: this has been the fate for practically every altcoin.

Alt szn on Solana has not truly commenced yet, though, and we’ve only witnessed glimmers of what it could become. If a period of broader alt strength is about to kick in, SOL’s recent history of outperformance could serve as the dry powder that allows Solana alts to outperform all others!

Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.

Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here.

Account Light mode Log Out