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Solana surpasses XRP as fifth largest cryptocurrency by market cap, SOL price sustains above $76

  • 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. 
SOL

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. 
SOL

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. 
SOL

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

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.

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

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