- Solana is losing momentum after rallying for over 100%
- The token recently wiped billions from its market cap following a sharp correction.
- While Solana struggled to maintain its footing, BNB successfully zoomed ahead and reclaimed its former position on the leaderboards.
Solana had a remarkable run in December, showcasing an impressive surge that propelled it to the forefront of the market. Over the past 30 days, SOL gained over 100% in value, firmly securing its status as a standout performer.
However, as the market approached year-end, Solana’s rapid ascent paused, allowing BNB to overtake and reclaim its position swiftly.
Solana Cools Off
For a major part of December, Solana posed a significant threat to BNB’s dominance thanks to its outstanding performance during the month. Its 114% surge allowed SOL to successfully oust BNB from its leadership position and secure the title of the fourth-largest crypto with a market cap exceeding $51 billion.
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However, things quickly took a turn for Solana as market conditions dived. SOL, having reached its yearly high of $126, experienced a sharp 25% decline, slipping to $97. The price drop wiped over $12 billion from Solana’s market cap, allowing BNB to reclaim its position effortlessly.
At press time, BNB boasted a market cap of $47 billion, surpassing Solana’s $45 billion market cap. In stark contrast, BNB has also performed exceptionally well, gaining 17% over the past week.
The reasons behind BNB’s outstanding performance remain uncertain, especially considering the mounting legal challenges the exchange and its former CEO Changpeng ‘CZ’ Zhao face.
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Nonetheless, the former Binance chief’s ouster and the $4 billion settlement deal have cleared up a lot of uncertainty and FUD surrounding the exchange. With no lingering contagions, BNB appears to have regained investor confidence, which can be seen in the sudden price surge.
On the Flipside
- Despite its surge, the defunct exchange FTX still holds millions in SOL tokens, most of which will hit the market in 2025.
- Binance remains under the regulatory scrutiny of the SEC, facing accusations of selling unregistered securities.
Why This Matters
Solana emerged as a formidable contender in the crypto market as it briefly overtook some of its rivals. Nevertheless, despite Binance’s mounting legal troubles, BNB remains steadfast, unfazed by the threat Solana poses, showcasing that investors are still confident in the exchange’s token.
Read why CZ can’t leave the US:
Ex-Binance CEO CZ’s Travel Plans Vetoed As Sentencing Nears
Read more about Mt. Gox’s double trouble:
Mt. Gox Double Trouble: Creditors Report Being Paid Twice
