According to a report by CoinMarketCap, Solana (SOL) has surpassed XRP to become the fifth-largest cryptocurrency with a market capitalization of $33.7 billion, hitting a 20-month high. The recent surge in value of SOL is due to the strong decentralized finance (DeFi) ecosystem and the craze surrounding meme coins. Despite the selling pressure associated with the FTX bankruptcy holdings, SOL’s growth has remained resilient.
Driving factors:
- The rapidly growing DeFi ecosystem: Solana’s decentralized finance ecosystem has seen significant growth, with total value locked (TVL) exceeding $1 billion. This milestone follows the collapse of FTX in November last year, with the recent surge fueled by rising asset prices and continued inflows into DeFi protocols.
- Meme Coin Mania: The popularity of meme coins like Bonk contributed to Solana’s rise. Bonk, a dog-themed token, has achieved a market capitalization of over $1.2 billion. The craze for meme coins has led speculators to acquire Solana as the underlying asset and convert it into their preferred meme coin. This cycle increases Solana’s trading volume and buying pressure.
- Improved network stability: Solana has made great strides in strengthening network reliability, addressing concerns stemming from service outages that occurred last year. Blockchain’s resilience has contributed to new trust among investors and users.
- FTX Distancing: Solana distanced itself from FTX following the exchange’s collapse. FTX, which purchased $1 billion worth of Solana-based tokens before filing for bankruptcy, has not hindered Solana’s recent success.
Current status of SOL:
- SOL is currently trading at $79.90 and is up 98.94% in the last 24 hours.
- Trading volume rose 39% to $2.8 billion, according to CoinMarketCap.
Solana’s recent achievements demonstrate its growing prominence in the cryptocurrency market, combining DeFi advancements and passion for meme coins.