Solana (SOL) just reached a new milestone as the fourth most valuable cryptocurrency, beating BNB to the fifth position. This happens amid a fantastic year for what is now being again called the “Ethereum-killer.”
Notably, Solana surpassed BNB Chain (BNB) in market cap between December 22 and 23. According to Coinstats, Solana now has $46 billion and BNB has $42 billion in capitalization.
Currently, SOL registers a 24-hour volume of $3.15 billion against BNB’s $772.54 million. The former is up 28% weekly, responsible for conquering the fourth position of the leading crypto index.
See Also: Paxos To Launch New Stablecoin, USDP, On Solana After Shutting Down BUSD
In the meantime, Tether (USDT) has a $50 billion higher market cap – of $91.25 billion – in the third position.
Bitcoin (BTC) is still the dominating cryptocurrency with $853.79 billion capitalization, followed by Ethereum (ETH), which is valued at $274.90 billion.
Solana’s Growth Suggests A Narrative Shift For DeFi And Web3
This surge in ranking should not be underestimated, directly resulting from a growing interest in Solana’s ecosystem.
Essentially, Solana’s total value locked (TVL) has played a crucial role in DeFi’s growth in 2023. The decentralized finance ecosystem even surpassed countries’ economies (GDP) at $52 billion worth of cryptocurrencies invested in these protocols.
Justin Bons, founder and CIO of Cyber Capital, Europe’s oldest cryptocurrency fund, believes in a narrative shift.
According to a post from Bons on X (formerly Twitter), the market is turning its eyes to layer-1 scalability.
What is happening in cryptocurrency now is awesome
There has been a narrative shift away from ETH in favor of scalable L1s such as SOL, AVAX, NEAR & EGLD
Validating the criticisms of ETH's "L2 scaling" roadmap
The future is so bright as the blockchain trilemma has been solved!
— Justin Bons (@Justin_Bons) December 22, 2023
In particular, projects like SOL aim to offer a more efficient user experience in DeFi and Web3. They use technological innovations to increase each network’s capacity without relying mostly on second layers, such as Ethereum.
See Also: Solana Witnessed Increased Activity On Solana-based DEXs
Therefore, cryptocurrency investors must prepare to learn and adjust as the market evolves. Changes usually bring challenges but also drive improvement and opportunities, as expressed by Justin Bons: “What is happening in cryptocurrency now is awesome.”
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