- The cryptocurrency Solana has recently experienced a breakout, but there are concerns about increasing crowd FOMO potentially impacting the rally.
- Data from on-chain metrics show a marked rise in Solana’s social media discussions, aligning with its price recovery.
- A close examination reveals that heightened social volume may indicate unsustainable enthusiasm.
Solana’s recent price surge has garnered significant social media attention, raising concerns about potential market overexuberance.
Surging Social Volume Parallels Solana Rally
Recent data from Santiment, an on-chain analytics firm, indicates a remarkable increase in Solana’s social volume, closely following the cryptocurrency’s recent upward trend.
The term “Social Volume” in this context refers to the measure of how actively discussed an asset is across major social media platforms. This metric is derived from counting unique posts, threads, and messages that mention Solana at least once.
Unlike a simple mention count, this method provides a holistic view of the conversation trend, avoiding skewed results from a few highly active posts while recognizing the broader social media activity surrounding the asset.
Below is a visual representation of Solana’s Social Volume trend over the past week:
The graph highlights substantial growth in the Social Volume metric for Solana. This surge signals a sharp increase in discussion intensity about the cryptocurrency.
This rapid rise is likely driven by Solana’s recent rally, which saw the coin’s price recover from around $124 to approximately $146, marking an impressive 18% return in a short span.
It’s not uncommon for a price rally to spark social media excitement, leading to more extensive discussions. However, the magnitude of this spike is particularly noteworthy, as it could signify excessive optimism.
Comparative Analysis: Solana vs. Avalanche
Santiment’s data also includes social volume metrics for Avalanche (AVAX), which has been undergoing a recovery run. Interestingly, despite Avalanche’s price improvement, its social volume increase has been relatively muted compared to Solana’s.
This contrast suggests that Avalanche’s rally might be more stable due to the lower FOMO levels, pointing towards a potentially more sustainable upward trend for AVAX as opposed to Solana.
Solana Price Analysis
After surpassing the $151 level, Solana experienced a slight pullback to $146. It’s currently uncertain if this retraction is a preliminary sign of the anticipated negative effects of increased crowd FOMO on Solana’s price trajectory.
Conclusion
While Solana’s recent rally and heightened social media discussions reflect growing interest, the excessive rise in social volume might indicate an impending correction. In contrast, Avalanche’s more subdued social response suggests a potentially more stable climb. Investors should monitor these dynamics closely for informed decision-making.
