- SOL’s price sees over 25% increase, propelling it past BNB in market cap rankings.
- Achieves a market cap of $51,60 billion, surpassing BNB’s $49,75 billion.
- Solana’s trading volume eclipses Bitcoin and Ethereum on Coinbase.
A significant shift has occurred as Solana (SOL), known for its high-speed transactions and scalability, has again overtaken Binance Coin (BNB) to become the fourth-largest cryptocurrency by market capitalization.
This development marks a potentially pivotal moment, emphasizing Solana’s growing influence. However, traders are now asking whether this flipping will last or whether Solana will lose the fourth spot again.
Solana Overtakes BNB Coin
Solana experienced a price increase of over 23% in a significant rally within just a week. This surge propelled Solana’s market capitalization to $51,60 billion on Wednesday, February 14, edging out Binance Coin (BNB), which stood at $49,75 billion.
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Several factors have contributed to Solana’s impressive performance. Firstly, the broader crypto market rally has set a conducive backdrop for growth-oriented assets like Solana. Still, the bull market does not account for SOL’s relative performance to other crypto.
The most recent SOL-specific developments were the successful presale of Solana’s Chapter 2 phone, which sold 100,000 units. Moreover, the recent popularity of the meme coin Bonk (BONK) within the Solana ecosystem has further spotlighted the blockchain.
Will Solana Keep the 4th Spot?
This is not the first time Solana overtook BNB and secured the fourth spot among cryptos. Earlier, SOL was ahead of BNB on December 2023, when the token briefly took fourth place. However, Binance’s native token quickly regained its lead in the following days. This means that it is not a given that Solana will retain its position.
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Solana’s ability to maintain its newfound position above Binance Coin hinges on several factors within the Solana and Binance ecosystems and external market forces.
For one, Solana’s position hinges on the continued adoption of its decentralized applications and its whole ecosystem. This includes the phones from Solana Mobile and their dApp store. Moreover, crucial for Solana is maintaining scalability and avoiding network outages. While SOL quickly bounced back from its latest outage, the repeated network issues will likely be a problem for its price.
On the other hand, the strong performance from Binance is also a threat to Solana’s position. Due to Binance’s BNB burns, the token is closely tied to the performance of the exchange. In the case of a market rally, Binance stands to profit, which will also boost its native token.
On the Flipside
- Despite its achievements, Solana faces challenges, including concerns over network stability. This is especially true after suffering the latest outage just weeks ago.
- While directly predicting whether SOL can keep its position is impossible, enumerating the various factors at play is still valuable to traders.
Why This Matters
Solana’s rise to the fourth spot in the market signifies its growing acceptance and potential for innovation in the crypto space.
Read more about Solana’s latest surge over BNB:
How Solana Briefly Overtook BNB, Became 4th Largest Crypto
Read more about how crypto solves high credit card fees:
Solana Phone Sale Success Reveals Truth of Credit Card Fees
