- 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.
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