Solana (SOL) just reached a new milestone as the fourth most valuable cryptocurrency. This happens amid a fantastic year for what is now being again called the “Ethereum-killer.”
Notably, Solana surpassed BNB Chain (BNB) in market cap between December 22 and 23. According to CoinMarketCap, both now have $40.84 billion and $40.64 billion in capitalization, respectively.
Currently, SOL registers a 24-hour volume of $3.15 billion against BNB’s $772.54 million. The former is up 28% weekly, responsible for conquering the fourth position of the leading crypto index.
In the meantime, Tether (USDT) has a $50 billion higher market cap – of $91.25 billion – in the third position. Bitcoin (BTC) is still the dominating cryptocurrency with $853.79 billion capitalization, followed by Ethereum (ETH), which is valued at $274.90 billion.
Solana’s growth suggests a narrative shift for DeFi and Web3
This surge in ranking should not be underestimated, directly resulting from a growing interest in Solana’s ecosystem.
Essentially, Solana’s total value locked (TVL) has played a crucial role in DeFi’s growth in 2023. The decentralized finance ecosystem even surpassed countries’ economies (GDP) at $52 billion worth of cryptocurrencies invested in these protocols.
Justin Bons, founder and CIO of Cyber Capital, Europe’s oldest cryptocurrency fund, believes in a narrative shift. According to a post from Bons on X (formerly Twitter), the market is turning its eyes to layer-1 scalability.
What is happening in cryptocurrency now is awesome
There has been a narrative shift away from ETH in favor of scalable L1s such as SOL, AVAX, NEAR & EGLD
Validating the criticisms of ETH's "L2 scaling" roadmap
The future is so bright as the blockchain trilemma has been solved!— Justin Bons (@Justin_Bons) December 22, 2023
In particular, projects like SOL aim to offer a more efficient user experience in DeFi and Web3. They use technological innovations to increase each network’s capacity without relying mostly on second layers, such as Ethereum.
Therefore, cryptocurrency investors must prepare to learn and adjust as the market evolves. Changes usually bring challenges but also drive improvement and opportunities, as expressed by Justin Bons: “What is happening in cryptocurrency now is awesome.”
