Solana and Cardano’s prices have lost much of their recent gains over the last 24 hours, down 7.32% and 6.77%, respectively.
However, the new crypto Bitcoin Minetrix is seeing notable gains as its presale exceeds the $7.5m mark.
Solana and Cardano Cool Off After Outsized Gains
Currently, Solana is down 9.7% this week but remains up 47% this month and 615% in the last year.
Meanwhile, Cardano is down 14.77% this week but up 20% this month and 90% this year.
As such, the recent sell-offs may merely be cooling-off periods ahead of trend continuations.
These periods are crucial for uptrending cryptos, enabling traders to lock in profits while also clearing out some of the overleveraged liquidity.
According to Coinalyze, Solana’s open interest recently reached its highest-ever level, over double what it was at its 2021 all-time high (ATH).
Open interest measures the volume of futures and options contracts open on an asset. As such, Solana’s considerable level of open interest represents overleverage and opens the price to intense sell pressure should those leveraged positions be stopped out (liquidated).
This has begun to occur with Solana, with its open interest down 43% from $1.54 billion last week to $874 million today.
However, Solana’s fundamentals have remained solid, alluding that the selloff is a correction on an uptrend rather than a trend reversal.
Crypto analyst Karan Singh Arora recently explained that Solana’s on-chain metrics continue to thrive. In a recent tweet, he said that Solana’s “on-chain transaction volume has hit new highs massively outperforming 2023 already.”
Moving to Cardano, Coinalyze data shows its open interest has also seen a wash, down 42% from $319 million to $182 million.
This puts Cardano in a comparable position to Solana, where leveraged positions have been liquidated, plummeting the ADA price.
However, there is also bearish sentiment about Cardano on social media platform X.
Commentator Duo Nine recently explained in a lengthy post why Cardano is “a VC coin” that early investors are farming, aiming to “exit” and dump on the community.
“By the time the VCs exit, the community will not be left with much but a ghost chain with an inflated market cap thanks to its 45 billion tokens,” he said.
The tweet has been seen 19,000 times in three hours and says it was inspired by a recent Coin Bureau video on the topic, which has amassed 143K views.
However, while Solana and Cardano have struggled, liquidity has rotated into other high-potential altcoins. One is Bitcoin Minetrix, a Stake-to-Mine protocol on Ethereum, which has raised over $7.6 million at crypto presale.
Stake-to-Mine Project Bitcoin Minetrix Receives Bullish Forecasts
Bitcoin Minetrix is a revolutionary cloud mining protocol that enables users to earn free BTC from the Ethereum network.
It offers a seamless experience, with users simply staking $BTCMTX tokens for Bitcoin mining credits, which they can exchange for cloud mining power, translating to Bitcoin rewards.
The process requires no hardware or technical knowledge from users, making it ideal for beginners or those wanting low effort, passive Bitcoin rewards.
Furthermore, the decentralized and transparent $BTCMTX token eradicates the risk of cloud mining scams, which was a significant industry deterrent before.
As such, Bitcoin Minetrix presents immense value to the Bitcoin network. But as highlighted by Jacob Bury, this could equate to significant $BTCMTX price growth.
In a recent video, Bury speculated if $BTCMTX could 100x.
“They are tokenizing the cloud mining software by allowing ordinary people to get into Bitcoin mining,” he said.
One of the advantages to Bitcoin Minetrix is that $BTCMTX will experience strong demand in line with the platform’s usage, equating to significant price potential. This is furthered by the supply being limited because tokens will be locked for staking and rewards will primarily be paid in Bitcoin mining credits, not $BTCMTX.
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