Solana Flips BNB To Become 4th-Largest Crypto, Is Ethereum Next

Solana has had one of many greatest worth journeys this yr, rising an excellent 665% since January. The cryptocurrency has notably performed properly within the final quarter of the yr, registering worth positive factors that had been virtually absent for almost all of the yr. 

This week, SOL flipped BNB to turn out to be the 4th largest cryptocurrency and second-largest altcoin by market cap. At this charge, Ethereum’s spot could also be subsequent.

Solana’s Spectacular Progress

Solana’s worth motion this yr has been nothing however shocking, and it has no intention of slowing down anytime quickly. On the identical time, Solana’s blockchain has grown in several metrics. The expansion can be concurrently linked to varied airdrops in Solana-based tasks and the Solana Saga Phone which gave out 30 million BONK tokens, a Solana meme coin, for every new proprietor of the telephone. In consequence, Solana overtook XRP in market cap rankings for the primary time ever, with the latter having a 1.82% worth lower in a 7-day timeframe.

Solana’s native token, SOL, lately reached a yearly excessive of $99, serving to the community to additionally briefly overtake BNB by way of market cap. In keeping with knowledge from Coinmarketcap, SOL’s 24-hour buying and selling quantity elevated by over 33% to over $5.86 billion. 

Nonetheless, Solana has since undergone a worth correction and is now buying and selling at $91. Then again, BNB’s worth development has been sluggish this yr, with the crypto solely registering a 9% acquire up to now three hundred and sixty five days. 

On the time of writing, BNB is buying and selling at $269, a 22.7% lower from its yearly excessive of $348. Solana is now at loggerheads with BNB and it’s only a matter of time till it absolutely overtakes and claims the place of the 2nd largest altcoin.

SOL worth recovers above $93 | Supply: SOLUSD on Tradingview.com

Can Solana Catch Up With Ethereum?

The query now’s whether or not Solana can catch as much as Ethereum, the second-largest blockchain community. Whereas Ethereum nonetheless dominates within the DeFi, NFTs, and good contracts house, Solana is continuous to amass a rising share of the business.

Particularly, exercise on Solana has been on par with Ethereum up to now few weeks, with the chains now rivaling by way of DEX quantity, NFT volumes, energetic addresses, transaction rely, and stablecoin transfers. In keeping with on-chain analytics platform Artemis, whole SOL buying and selling quantity on decentralized exchanges reached $1.5 billion up to now 24 hours, its highest to this point this yr.

Supply: Artemis

Solana is presently buying and selling at $91, up by 17% up to now seven days, and is on its strategy to breaking the $100 worth degree once more. If the current pace of price growth continues, we may see Solana revisiting its present all-time excessive of $259 within the first half of 2024.

Nonetheless, Solana nonetheless has a protracted strategy to go to match Ethereum’s community results and worth. Ethereum’s whole market cap presently stands at $278.3 billion, $244 billion greater than Solana’s $39.4 billion market cap.

Featured picture from Analytics Perception, chart from Tradingview.com

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