Solana increases by 58.75% and surpasses Binance Coin in market capitalization, potentially targeting XRP next
XRP is facing stagnant price trends and inconsistent chain signals
Solana [SOL] has seen significant improvements in recent months, drawing attention in the cryptocurrency world and making notable changes in the digital asset rankings. Starting the new year with a significant milestone, Solana has surpassed Binance Coin [BNB], solidifying its position as a major contender in the market.
This rapid growth has sparked much discussion about whether Solana's momentum can continue, allowing it to surpass XRP and climb higher in the rankings.
Solana outperforms XRP – Detailed analysis
In fact, Solana has continued to attract attention with a 58.75% increase in recent weeks, demonstrating steady recovery and a strong upward trend as described in its daily price chart. This performance has solidified its position above Binance Coin in terms of market capitalization, raising the possibility of a similar challenge to XRP.
Source: TradingView
In contrast, the value of XRP remains relatively stable. Although XRP has its strong moments, its growth momentum is overshadowed by Solana's long-term upward drive. SOL’s ability to maintain high trading volume and investor interest indicates stronger fundamental or market sentiment.
As SOL approaches closer to XRP's market capitalization, the difference in their price trends may signal a shift in investor preferences, particularly for assets with high scalability and ecosystem development.
The indicators show mixed signals between price stagnation
The chart records the stagnant price movement of XRP and the oscillating chain indicators.
For example, Realized Cap HODL Waves show a significant decrease in the number of short-term investors, suggesting a reduction in speculative trading activity. Meanwhile, mid-term holders exhibit modest accumulation, indicating some confidence in holding XRP despite limited price momentum.
Source: Santiment
Exchange supply also remains high, reflecting potential selling pressure or investor hesitation in moving tokens off trading platforms. Additionally, the MVRV Z-Score, which assesses overvaluation or undervaluation, appears to be in a neutral zone – indicating indecision in market sentiment.
These indicators together paint a picture of the market in a state of limbo for XRP, with no clear optimistic or pessimistic signals. In contrast, more favorable chain data and Solana's price performance may give it an edge in potentially surpassing XRP.
Can SOL surpass XRP?
The continuous price recovery of SOL, strong trading volume, and positive chain indicators reflect a market sentiment heavily leaning towards it. Meanwhile, XRP may face obstacles with stagnant price action and asynchronous chain signals, including high exchange supply and declining activity among short-term holders.
The outcome of this battle may depend on broader market trends, ecosystem developments, and investor sentiment. If Solana can maintain an upward trajectory and leverage the network’s scalability and activity, surpassing XRP may not be far away.
