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 âEthereum Killer,â transitioned to being the âBNB Killerâ as its market cap surpassed BNBâs, reaching 86.23 billion compared to BNBâs 85.79 billion. An essential factor contributing to Solanaâs success has been the introduction and authorization of Ethereum spot ETFs.
Solanaâs price exceeding 186 marked a significant milestone as it surpassed Binanceâs 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.
Solanaâs 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 Visionâs CEO, recently shifted 90% of his Bitcoin holdings to Solana, citing its strong market performance.
Solanaâs 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 Palâs belief in the potential for higher returns compared to Bitcoin. Solanaâs market cap surpassed Binance Coinâs, reaching $86.23 billion, fueled by the launch of Ethereum spot ETFs and increased institutional interest.
Solanaâs 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 Templetonâs 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 Solanaâs 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, Solanaâs market capitalization of $49.36 billion was 1.74% higher than BNBâs $48.5 billion, according to CoinMarketCap data.
Solanaâs 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 SOLâs 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%.
Solanaâs 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 Solanaâs 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
Solanaâs anticipated ascent is on the horizon, and itâs likely to maintain its position as the 4th largest blockchain. Several factors contribute to Solanaâs 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 Solanaâs elegance and exclusivity. Since its inception in 2020, Solana has steadily built upon its initial promise.
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Resources: CoinMarketCap Defillama Coinshares Search Engines
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