SOL, Solana’s native cryptocurrency, hit a new milestone as it soared past $210 for the first time since the pinnacle of the 2021 crypto bull market. Its 34% weekly gain far outperformed Bitcoin’s 18% gain and other major digital currencies. This recent breakout brought Solana’s market capitalization above $100 billion, placing it among only three other established cryptocurrencies with higher valuations: Bitcoin, Ethereum, or Tether.
This rally came just days after a broader crypto market surge after Bitcoin smashed its previous price highs following a series of Federal Reserve rate cuts. Solana’s gains come as investors and analysts assume renewed confidence in the ecosystem, even as the platform faces challenges after the collapse of FTX, a key backer. Now, many investors are contemplating what makes Solana the next Ethereum: with a market cap of about $389 billion, just Ethereum has significantly remained the most dominant market.
The rapid rise of SOL also speaks to retail users and its ability to capture a significant market share in the decentralized finance (DeFi) market. According to recent data from Coinbase, the network has become a popular crypto project choice and now hosts multiple memecoins and DeFi protocols. For these reasons, it has become one of the most profitable sectors in the crypto space and has positioned Solana as a competitive platform for on-chain trading.
Solana Surges as DeFi Activity Fuels Comeback
After FTX and Alameda Research’s collapse in 2022, Solana started to be doubted due to the links to the pair of companies. Nevertheless, Solana’s network fared well, and emerged as a dominant ecosystem for the retail-driven crypto activity, regaining interest in DeFi. Since then, it has become a main platform for such cycle’s memecoin popularity, hosting protocols like pump.fun.
The platform’s recent DeFi activity surge on SOL has further bolstered its appeal to retail investors seeking decentralized trading options. The Coinbase report says this has pushed Solana into becoming the third most profitable sector in crypto. SOL has other features that make it stand out as a top choice for cryptocurrency investors — its robust DeFi ecosystem and low transaction costs helped boost its recovery and subsequent market gains.
The fact that SOL has made a comeback after struggling in 2022 shows how adaptive the network is and how much it is still around in the fast-changing crypto world. The revived optimism for the blockchain’s future growth potential has been due to its speed and cost-effectiveness, making it a favourable option for developers and users.
SOL Hits $100B Sparking Ethereum “Flipping” Talks
After consolidating for eight months, SOL’s recent breakout suggests new horizons in the ongoing crypto bull market. Therefore, analysts see this movement as an indicator of an accelerating market, and prices may increase rapidly. But the breakout has focused on what some traders call the ‘banana zone’ — a time when prices tend to surge steeply.
Bob Loukas, a market expert, says SOL’s return to the charts could take it back above its previous all-time high of $260 in coming weeks. As Solana is now outperforming most other altcoins, some analysts predict that if this continues, Solana will eventually outdo Ethereum in terms of market cap. That speculation remains unproven, but Solana’s ascendance to $100 billion territory again gives rise to “flipping” discussions, crypto aficionados wondering if Solana can one day top Ethereum.
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