Solana had one travel at the best price this year, increasing the outstanding amount by 665% since January. The cryptocurrency has done especially well in the last quarter of the year, recording price gains that have been virtually absent for most of the year.
This week, SOL BNB flipped to become the fourth-largest cryptocurrency and second-largest altcoin by market capitalization. At this rate, Ethereum’s place could be next.
Solana’s impressive growth
Solana’s price movement this year has been nothing if not surprising, and it isn’t expected to slow down anytime soon. At the same time, Solana’s blockchain has done just that grown in different measures. The growth can also be tied to several airdrops in Solana-based projects and the Solana Saga phone who spent 30 million BONK tokens, a Solana meme coin, for any new phone owner. As a result, Solana overtook XRP in the market cap rankings for the first time ever, with the latter experiencing a 1.82% price drop in a span of seven days.
Solana’s native token, SOL, recently reached an annual high of $99, which also allowed the network to briefly overtake BNB in terms of market capitalization. According to data from Coinmarketcap, SOL’s 24-hour trading volume increased by more than 33% to over $5.86 billion.
However, Solana has since undergone a price correction and is now trading at $91. On the other hand, BNB price growth has been sluggish this year, with the crypto only posting a 9% gain in the past 365 days.
At the time of writing, BNB is trading at $269, down 22.7% from its yearly high of $348. Solana is now at odds with BNB and it is only a matter of time until it completely overtakes and claims the position of the second largest altcoin.
SOL price recovers above $93 | Source: SOLUSD on Tradingview.com
Can Solana overtake Ethereum?
The question now is whether Solana can overtake Ethereum, the second largest blockchain network. While Ethereum continues to dominate in DeFi, NFTs, and smart contracts, Solana continues to gain a growing share of the industry.
In particular, The activity on Solana was similar to that of Ethereum in recent weeks, with the chains now rivaling in terms of DEX volume, NFT volumes, active addresses, number of transactions and stablecoin transfers. According to on-chain analytics platform Artemis, total SOL trading volume on decentralized exchanges reached $1.5 billion in the past 24 hours, the highest so far this year.
Source: Artemis
Solana is currently trading at $91, up 17% in the past seven days, and is on track to break the $100 price level again. As the current rate of price growth Moving forward, we could see Solana revisit its current all-time high of $259 in the first half of 2024.
However, Solana still has a long way to go to match this Ethereum’s Network Effects and price. Ethereum’s total market cap currently stands at $278.3 billion, $244 billion more than Solana’s market cap of $39.4 billion.
Featured image from Analytics Insight, chart from Tradingview.com
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