Solana Surpasses Binance Coin, Threatens Ethereum’s DEX Dominance
The Essentials in Brief
Solana (SOL) has experienced an impressive 22-fold increase since the low point in the crypto winter of 2022, thereby overtaking Binance Coin (BNB) in market capitalization. Is Ethereum (ETH) the next target? A look at the increasing on-chain activity and record highs in transaction fees suggest that Solana is well on its way to playing a leading role in the field of smart contracts and decentralized exchanges (DEX).
Network Activity Drives Value
The rising on-chain activity appears to be a major driver for Solana’s value increase. In particular, Solana has surpassed Ethereum in DEX volumes for two days in a row. The fees on Solana reached a historic high on March 17. These developments suggest that the network is experiencing increasing acceptance and use, which in turn positively influences the value of SOL.
Increased Profit-Taking as a Risk?
The recent price increase of Solana has also prompted large investors, so-called whales, to sell their holdings to realize profits. For example, a whale transferred 200,000 SOL worth 40 million US dollars to the crypto exchange Binance in the last two days. Although this can be seen as profitable in the short term, a continued trend of whale sales could slow SOL’s upward trend.
Our Assessment
Solana has put in an impressive performance in recent months, supported by significant on-chain activity and rising transaction fees. The overtaking of BNB in market capitalization and the challenge to Ethereum in terms of DEX volumes speak for the growing confidence in the network. However, it remains to be seen whether Solana can maintain this momentum, especially in the face of increasing selling pressure from large investors. Investors should closely monitor developments and keep in mind that the crypto market is volatile and unpredictable.
Sources: AMBCrypto, Lookonchain, CoinMarketCap, DeFiLlama
| Symbol | SOL |
| Coin type | Alt Coin |
| Transaction Speed | High |
| Pros |
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| Cons |
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| Price | $178.64 |
| 24h % | -0.80 % |
| 7d % | 8.50 % |
| 30d % | 13.84 % |
| 60d % | 29.50 % |
| 1y % | 448.60 % |
| Market Cap | $84,071,550,342.00 |
| Official Links | Website | Source Code |
| Socials | Reddit | X |
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