Solana (SOL) has surpassed XRP in market capitalization, reaching over $84 on December 20th, marking a 13.8% increase. The surge has propelled SOL to become the fifth-largest cryptocurrency as of writing.
This remarkable rise has sparked discussions about Solana's potential to challenge Ethereum's dominance due to its offering of faster and more cost-effective transactions.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
What is Shiba Inu Coin? (Explained with Animations)
Several factors have driven SOL's recent price surge. For example, increased network activity and successful SPL token launches have played a crucial role.
Initially, Solana gained more attention on December 7th, when major exchanges listed SPL token JITO. JITO's market capitalization managed to surpass $300 million in hours, which was very impressive.
Though, the present upswing in SOL's price can somewhat be attributed to the fervor surrounding airdrops that led to the sell-out of Solana's Saga phone, causing it to command up to $5,000 on secondary markets.
Each Saga phone received 30 million BONK tokens, exceeding its $599 price tag. Coinbase's listing of memecoin BONK on December 14th surely was the turning point for that.
Trader Evanss6 highlighted Solana's user-friendly approach, essentially stating that Solana’s emphasis on mobile accessibility is precisely what crypto projects need.
However, SOL's rally extends beyond memecoins, as evidenced by its expanding decentralized applications (dApps) ecosystem. Three weeks ago, Solana's total value locked (TVL) was $654 million, now growing to $1.28 billion in a 96% increase, outpacing competitors.
The influx of deposits into the Solana network probably coincided with a notable uptick in activity within its dApps, with 875,250 unique active addresses interacting with them.
Overall, Solana's recent surge appears sustainable, as it is not solely dependent on a few airdrops and token launches. The network's ability to handle increased demand without downtime has garnered recognition.
