Solana's Native Token Stages Remarkable Rally, Challenges Ethereum's Dominance
Summary:
On December 20, Solana's native token (SOL) saw a 13.8% rise, surpassing the $82 mark for the first time since May 2022 and overtaking Ripple (XRP) in market capitalization. The growth has led some experts to question Ethereum's (ETH) top position as more users get attracted to Solana's faster and cheaper transactions. The token's success can be attributed to an increase in network activity and successful token launches. Solana's consistent growth in decentralized applications (DApps) also drives its success, marking an impressive rise from $654 million to $1.28 billion in total value locked (TVL) in just three weeks.
On December 20, the native token of Solana (SOL) experienced a surge by 13.8%, surpassing the $82 mark for the first time since May 2022. Its remarkable 33.5% ascension in the past fortnight allowed Solana to surpass Ripple (XRP) regarding market capitalization, thus becoming the fourth-largest cryptocurrency, exempting stablecoins. The rise in Solana's popularity due to its faster and more affordable transactions has led some analysts to question if Ethereum (ETH) will retain its top position. Evan_ss6, a trader, hinted this in a post on the X platform, highlighting the appeal of Solana due to its excellent mobile integration, attracting newcomers, and its impressive user experience, especially for launching tokens and NFTs.
The above-mentioned surge of Solana's native token can be attributed to an upswing in network activity and the immediate success of token launches. These include sold-out airdrops and the Saga's phone flying off the shelves. One highlight in Solana's journey was on December 7 when major exchanges listed the new SPL token, Jito (JITO), a liquid staking protocol inspired by Ethereum's Lido. Its impressive launch caused JITO's market cap to surpass $300 million within a few hours of trading, which accentuated the demand for other token launches on the Solana Network. The exciting revelation about every Saga phone receiving 30 million BONK tokens, exceeding its $599 price tag, caused considerable buzz in the market.
Along with their experimentation with memecoins, Solana's growth is also due to the development of their decentralized apps (DApps). In just three weeks, their total value locked (TVL) increased from $654 million to $1.28 billion, also causing an increase in the number of active users on Solana's DApps. These impressive metrics are a result of users eagerly waiting for newer airdrops and token launches, but also a sign of Solana establishing a footing in the DApps industry.
Support from leading hardware wallet provider, Trezor, for Solana and its SPL tokens, and a bullish report from Binance Research on December 20 added to the optimistic view on Solana. The future certainly looks bright for Solana as they aim to sustain their network activity growth, not merely being dependent on a few token launches.
(This article does not intend to give investment advice or recommendations. Every investment and trading move holds a risk, and readers should do their own research while making decisions.)
Published At
12/20/2023 11:30:51 PM
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