Solana (SOL) recently overtook Binance Coin (BNB) in market capitalization, reclaiming the 4th position globally with a market cap of 86.23 billion. This mirrors a similar occurrence in February 2024 when Solana surpassed BNB with a market cap exceeding 50 billion.
Solana, once dubbed the “Ethereum Killer,” transitioned to being the “BNB Killer” as its market cap surpassed BNB’s, reaching 86.23 billion compared to BNB’s 85.79 billion. An essential factor contributing to Solana’s success has been the introduction and authorization of Ethereum spot ETFs.
Solana’s price exceeding 186 marked a significant milestone as it surpassed Binance’s BNB, with a market cap of 84.90 billion and notable institutional inflows of $9.6 million, second only to Ethereum. Potential ETF candidacy attracted both retail and institutional investors, with CoinShares reporting substantial inflows into SOL, surpassing other altcoins like Litecoin.
Solana’s rise to the fourth-largest cryptocurrency position, overtaking BNB with a market cap of $86.23 billion, was partly fueled by the launch of Ethereum spot ETFs.
The discovery of a promising platform on Solana, BULB, enables users to migrate and monetize content easily, emphasizing a write-to-earn and read-to-earn model on the blockchain. Planned enhancements include maximizing the threading feature and launching a mobile app for wider adoption.
Raoul Pal, Real Vision’s CEO, recently shifted 90% of his Bitcoin holdings to Solana, citing its strong market performance.
Solana’s year-to-date surge of around 75% has outperformed Bitcoin and Ethereum, with gains of 58% and 42% respectively.
The transition to Solana was driven by Pal’s belief in the potential for higher returns compared to Bitcoin. Solana’s market cap surpassed Binance Coin’s, reaching $86.23 billion, fueled by the launch of Ethereum spot ETFs and increased institutional interest.
Solana’s ranking as the 4th largest cryptocurrency was solidified by its market cap exceeding $86.23 billion, a position it also achieved in February 2024.
Franklin Templeton’s recent endorsement of Solana has generated excitement. As a global asset management giant with over $1.64 trillion under management, their interest in Solana has fueled speculation about a potential spot ETF.
Such an ETF could impact Solana’s price by providing a regulated avenue for institutional investors to access crypto. However, regulatory challenges, including the absence of a CME futures market for Solana (which the U.S. Securities and Exchange Commission typically requires), may pose hurdles for Solana ETFs.
History Repeats
In February 2024, Solana previously outperformed Binance Coin (BNB) and held the 4th position. At that time, Solana’s market capitalization of $49.36 billion was 1.74% higher than BNB’s $48.5 billion, according to CoinMarketCap data.
Solana’s rapid market cap growth is unsurprising, considering its resilience in overcoming recent challenges, including temporary outages and its previous partnership with the now-defunct crypto exchange FTX.
The substantial increase in SOL’s market cap can be primarily attributed to its impressive price performance. In the first quarter of 2024, Solana outperformed major cryptocurrencies like Bitcoin and Ethereum, experiencing a remarkable increase of over 75%.
Solana’s native token, SOL, has achieved a market capitalization surpassing $50 billion for the first time since 2021. This remarkable growth has been particularly pronounced since October 2023, solidifying Solana’s position as one of the top 10 altcoins.
Currently, Solana is aiming for the $200 price level after successfully overcoming the $180 resistance zone. As of now, SOL is trading at $186, with daily gains exceeding 2%. The recent bullish trend is evident in the weekly timeframe, where Solana has surged by over 10%.
Final Words
Solana’s anticipated ascent is on the horizon, and it’s likely to maintain its position as the 4th largest blockchain. Several factors contribute to Solana’s favorability, including its disciplined approach, orderly development, and robust community. Notably, upcoming events such as the potential approval of a Solana ETF and news from the annual Break Point event promise exciting surprises. Drawing a comparison between Solana and Apple, some admire Solana’s elegance and exclusivity. Since its inception in 2020, Solana has steadily built upon its initial promise.
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Resources:
CoinMarketCap
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