Solana surpassed XRP to become the fifth largest cryptocurrency in the crypto market on December 20, based on current data.
As of 11:30 p.m. UTC, Solana (SOL) reported a market capitalization of $34.8 billion. XRP, a coin associated with Ripple, reported a market capitalization of $33.3 billion.
Solana’s high market position appears to be due to its own stellar performance rather than XRP losses. XRP is up just 1.67% over 24 hours, closely matching market average gains of 2.8%. SOL, on the other hand, significantly outperformed the average by gaining 12.08% over 24 hours.
At the time of writing, SOL and XRP were priced at $81.45 and $0.62, respectively. The difference between the price of each asset is the result of token denomination and, unlike market capitalization, does not reflect the relative position of each asset.
SOL has gradually increased since October
The reasons for Solana’s latest price hikes are unclear, although it appears to build on long-standing growth. The price of SOL has been gradually increasing since at least October, meaning notable events like the launch of Solana’s GameShift suite, FTX estate transfers involving the SOL token, and hype around the Solana-based memecoin BONK have all coincided with its recent growth. .
On-chain activities rather than public events can also contribute to growth. Recent reports indicate, for example, that decentralized exchanges Solana have recently outperformed their Ethereum-based counterparts in terms of trading volume.
Contrary to previous negative perceptions, Solana recently experienced a victory with its Saga phone. Despite low sales for most of 20203, it has since sold out in the United States following the explosion of Solana-based memecoin BONK.
SOL also experienced sudden losses in November 2022 when FTX, with which it was closely associated, collapsed. Although these events did not prevent SOL’s overall growth, they may still have had some effect on prices.