Crypto markets are notoriously fickle. Round here, fundamentals don’t power prices to the same degree as stocks — valuations instead tend to reflect a sickly mix of vibes, cult of personality, and memes.
Investing in and trading crypto is murky as a result. Active users, fee generation, total value locked or even developer counts are all metrics that should matter. But they really don’t.
Sentiment is king, and high correlation between digital assets means that when things are bad for bitcoin, then the rest of the market almost always suffers.
It’s no wonder, then, that the concept of “hated rallies” has emerged as our current bear cycle shows signs of letting up. The idea is that the more hated the crypto, the more likely it is to pump hard as altcoin season sinks in.
Take Solana (SOL), which has attracted haters from the Vitalik-maxi crowd ever since it was dubbed an “Ethereum killer” sometime around 2018. Like Ethereum, Solana supports apps, NFTs, stablecoins and tokens, but with about 100 times the throughput.
Crypto purists — eager to hate on Solana — could argue the network is more centralized than Ethereum on account of its lower node count (around 2,900 to 7,700) and supposedly high costs associated with spinning up a validator node.
Bitcoin diehards, on the other hand, would already simply shit on Solana for running an initial coin offering in the first place. (Its delegated-proof-of-stake consensus model doesn’t do it any favors with the Orange Coin crowd, either.)
Solana hate from the Ethereans and Bitcoiners was augmented by even the fringes of the crypto space when FTX went kaput. Now-convicted fraudster Sam Bankman-Fried was one of Solana’s most obnoxious backers, having bankrolled significant chunks of the Solana ecosystem from the ground up.
Solana is one of the best performing top-100 cryptocurrencies this year after rallying more than 400%, going from under $10 to more than $56. SOL has more than doubled in the last month alone.
SOL would still need to multiply three-and-a-half times to hit its all-time high set in 2021. But for all its haters, Solana has easily outstripped the top two: ETH has gained about 70% over the year to date, BTC about 120%.
Other recent “hated rallies” include Terra Luna Classic (LUNC) — the same cryptocurrency at the heart of Do Kwon’s magnanimously flawed algorithmic stablecoin empire. LUNC was good for a 40-plus-percent one-day rally late last week.
The new edition LUNA token, now spearheaded by the Terra community without Kwon, pushed 73% higher on the same day, while FTT, the once-native token for Bankman-Fried still-bankrupt crypto exchange FTX, doubled.
Even the floor price for Bored Ape Yacht Club NFTs is up more than 60% since its August lows, going from $37,000 to more than $60,000. For scale, the S&P 500 is up 2% over the same period.