Is SOL Ready To Flip USDT?
Solana (SOL) hit a new all-time high (ATH) of $262, marking a historic recovery after three years of volatile price action. Notably, at the height of the FTX exchange collapse and subsequent cryptocurrency bear market, the coin briefly fell to $8.
Solana achieves historic recovery, USDT surges
The highly sought-after “Ethereum killer” Solana (SOL) is once again in the spotlight. After dominating the 2020-21 crypto bull run, the digital asset’s value plummeted following the massive collapse of Sam Bankman-Fried-led FTX. However, SOL has made an impressive comeback in the past two years.
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As of this writing, SOL is the fourth largest cryptocurrency, with a reported market capitalization of over $123 billion. The market cap of the Layer-1 blockchain is only $8 billion less than the $130 billion market cap of stablecoin Tether (USDT).
Notably, SOL would need a further 10% price increase to decisively increase USDT’s market cap and become the third-largest digital asset by market cap. SOL will become the third largest cryptocurrency after Bitcoin (BTC) and Ethereum (ETH).
Considering the token’s recent price action, it wouldn’t be surprising to see SOL surge past the market cap of the leading stablecoin before the end of the year. In the past three weeks alone, the coin has experienced a staggering 75% surge, rising from $148 on November 4 to $259 at the time of writing.
While the broader cryptocurrency market has gained momentum following the victory of pro-crypto Republican U.S. presidential candidate Donald Trump, it would be disingenuous to attribute SOL’s rise solely to this.
Memecoin mania, increased network activity, ETF potential help SOL
The significant shift in SOL may be related to multiple factors stimulating increased network adoption. One of the most prominent contributors is the ongoing memecoin craze, which has become the dominant narrative in the crypto market.
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Memecoins, especially those based on the Solana blockchain, have become a hot topic in the cryptocurrency market over the past year. The total market cap of Solana-based memecoins in October alone transcend $10 billion.
This meme coin craze has also translated into improved Solana’s network activity. Solana’s active addresses grew 42% month-on-month (MoM) between September and October, reaching approximately 123 million.
In addition to benefiting from the memecoin narrative, Solana also sees Increase Year-round decentralized finance (DeFi) events. According to DefiLlama dataSolana is home to the second largest DeFi ecosystem in the world, with a total value locked (TVL) of $9.265 billion.
Additionally, Solana-based exchange-traded funds (ETFs) are a growing prospect. a recent report express The U.S. Securities and Exchange Commission (SEC) is in active talks with several asset managers about the possible launch of a new spot Solana ETF.
While SOL’s new ATH achievement is impressive, experts believe The coin still has huge growth potential. As of this writing, SOL is trading at $259, up 6.2% in the past 24 hours.
Featured images from Unsplash, charts from DefiLlama.com and Tradingview.com
