With a market capitalization of $88.4 billion, Solana has moved into third place in the ranking of cryptocurrencies, displacing Binance Coin which has an $86.7 billion market capitalization. Will Solana now widen the gap?
Solana leaves rest of the field behind
Source: CoinGecko
As can be seen in the above graphic, if one takes out Tether ($USDT) from the list, given that it is a stablecoin, Solana (SOL/USD) has just become the 3rd biggest cryptocurrency by market capitalization. Given its cutting edge technology, and increasingly speedy adoption, the Solana network is potentially only likely to widen the value gap between it and the Binance network.
$SOL making higher highs and lows against $BNB
Source: TradingView
Looking at the price of $SOL against $BNB (SOL/BNB), one can see a general uptrend for $SOL since 2020. The two peaks are witness to large retracements in $SOL value against $BNB, but higher highs and lows have continued to be made. Currently, $SOL has just made a local higher high, so this latest uptrend looks to be continuing.
$BNB still a solid bet
$BNB will still likely be a solid bet going into what could potentially be the last year of this bull market. The Binance centralised exchange will be a popular port of call for retail traders and investors looking to get into their favourite altcoins, if or when altseason comes around. Therefore holding the $BNB coin for cheaper fees and other benefits would make sense.
Solana DEX’s taking the lion’s share of transaction fees
However, it can be argued that decentralisation is the answer, and the very successful Solana-based DEX’s ((Jupiter ($JUP), Raydium ($RAY), and Orca ($ORCA) et al.,)) are currently grabbing the lion’s share of transactions and fees. Also, with the advent of the Firedancer validator client, although admittedly still not battle-tested, unequalled speed and scaling is only likely to push the $SOL token even higher.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
