- Solana beat XRP to be the fifth largest cryptocurrency by market capitalization, early on Wednesday.
- SOL ecosystem recently generated high activity and interest among market participants with new projects and airdrops.
- SOL price rallied over 5% on the day, sustained above $76.
Solana observed a spike in its volume between October 30 and December 19, as participants are attracted to the SOL ecosystem for the airdrops from Solana-based projects. Based on on-chain data Solana’s social dominance is close to six-month high, another sign of the project’s relevance among traders.
The Ethereum-killer temporarily replaced XRP as the fifth largest cryptocurrency by market capitalization, according to CoinGecko data. Crypto experts believe SOL price is likely to witness a second rally this cycle.
Also read: Solana, XRP and Cardano receive $16 million weekly inflows as Bitcoin sees outflows
Solana surpassed XRP, ranked fifth largest asset by market capitalization
- Post the July 13 ruling by Judge Torres in the SEC v. Ripple lawsuit, XRP’s market capitalization made a recovery and the asset regained its spot as the fifth largest asset.
- The recent activities in the SOL ecosystem fueled gains in the altcoin and aided Solana’s move to displace XRP.
Solana ranks 5th among cryptocurrencies by market capitalization. Source: CoinGecko
- At the time of writing, SOL and XRP are neck and neck in their market capitalization. While SOL’s gains are driven by catalysts like airdrops in Solana-based projects and the Solana Saga Phone, XRP’s gains are influenced by bullish announcements from Ripple and positive news related to the SEC v. Ripple lawsuit.
- Solana’s on-chain metrics, like SOL volume and social dominance support the asset’s recent gains and its rising market cap.
- SOL volume shows spikes between October 30 and December 19, and it increased alongside the SOL price rally, as seen in the Santiment chart below.
 [18.36.34, 20 Dec, 2023]-638386747337934158.png)
SOL volume and price. Source: Santiment.
- Solana’s social dominance is nearing its six-month peak as market participants engage in discussions related to SOL, across social media platforms like X.
 [18.37.36, 20 Dec, 2023]-638386747604750623.png)
SOL social dominance and price. Source: Santiment.
Analysts predict Solana is gearing up for second rally
Crypto analyst behind the Twitter handle @CryptoJelleNL evaluated the Solana price chart and observed that SOL price is pushing towards a breakout on the weekly chart. The analyst believes SOL price is ready for another rally, with $100 as the target for Solana.
SOL/USDT price chart Source: CryptoJelleNL’s tweet on X
At the time of writing, SOL price is $77.80 on Binance. The asset yielded 13% weekly and 6% daily gains for holders in its uptrend.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ripple on-chain metrics show bullish signs amidst legal struggle with SEC, XRP eyes recovery
Ripple made a comeback above $0.48 on Tuesday and hovers above that level in Wednesday’s European session. Ripple on-chain metrics such as transaction volume and Network Realized Profit/Loss have turned bullish, supporting a recovery in the altcoin.
Bitcoin price falls amidst German government transfers, miners activity
Bitcoin (BTC) extends correction on Wednesday and hovers around $61,000 after finding resistance near the $64,000 level on Monday. Recent on-chain data indicates heightened selling activity from Bitcoin miners early in the week.
Crypto Today: Bitcoin erases gains from end of June, Ethereum declines while Ripple holds
Bitcoin wipes out gains from the last week of June and falls below $60,000 on Wednesday. Ethereum and top altcoins ranked by market capitalization erased gains as the inflation outlook worsened. Ripple holds on to recent gains and hovers above $0.48 on Wednesday.
Three reasons why altcoins could shake off losses this week
On-chain data from Santiment shows that altcoins are currently in the opportunity zone, or generating buy signals. The top three altcoins in the buy zone are Basic Attention Token (BAT), Chromia (CHR), and Highstreet (HIGH), per Santiment.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.