Solana (SOL) has turned around Binance Coin (BNB) is set to become the fourth-largest cryptocurrency by market capitalization, prompting investors to wonder if Ethereum’s (ETH) turnaround is next.
Solana (SOL) has turned around Binance Coin (BNB) is set to become the fourth-largest cryptocurrency by market capitalization, prompting investors to wonder if Ethereum’s (ETH) turnaround is next.
Binance coin launched by Solana
According to the latest data from CoinMarketCap, Solana’s market capitalization is now $89.3 billion, higher than BNB’s $85.6 billion. This development comes amid a broader cryptocurrency market rally, with Solana trading at $201, representing a 35.14% increase over the past week.
Solana’s rising market capitalization demonstrates its growing supremacy in the crypto space and its development as a formidable rival to established competitors like Ethereum. One of the factors contributing to Solana’s rally is the recent accumulation of the cryptocurrency by large investors, known as “whales.”
Additionally, Solana’s rise is supported by strong on-chain metrics, showing increased usage and a thriving environment. The price has frequently found higher lows, which is a bullish indicator in technical analysis.
Furthermore, Solana represents a considerable portion of the global decentralized finance (DeFi) TVL statistics. So far, Solana DeFis have already attracted more than $4 billion in investments.
Is Ethereum next?
Many investors are wondering if Solana’s performance against Binance Coin portends a possible challenge to Ethereum’s dominance. Currently, Ethereum’s market capitalization stands at $430.2 billion.
Before the Dencun upgrade was rolled out last week, Ethereum had long struggled with scalability issues and high gas fees, limiting its ability to successfully scale for widespread adoption. This provides a basis to switch to Solana if the Dencun upgrade does not provide the expected results.
A previous report from Guru-Investingshows that the DeFi ecosystem underwent a major transformation as power shifted between Solana and Ethereum. At the time, DefiLlama data showed that Solana had surpassed Ethereum in terms of total decentralized exchange (DEX) volume.
Meanwhile, Solana’s improved scalability and cheaper transaction costs make it a strong competitor to Ethereum. While Ethereum’s recently released Dencun upgrade aims to address some of these scalability difficulties, it remains to be seen if it can compete with platforms like Solana in the near term.
