Without a doubt, Solana (SOL) has emerged as a prominent player in the recent cryptocurrency landscape, showing a notable increase in value that has caught the attention of market participants.
Its extraordinary performance, marked by substantial gains, has propelled Solana beyond the ranks of other leading cryptocurrencies, securing a coveted position in the top five by market capitalization.
The rise of Solana: eclipsing its rivals and demonstrating its dominance
The impressive rally of solarium It is a testament to the underlying strength of blockchain and investors' growing confidence in its capabilities.
This bullish momentum has not only allowed SOL to eclipse some of the traditionally dominant cryptocurrencies, but has also affirmed its relevance and potential within the broader digital asset ecosystem.
Daily user activity on Solana has increased as a result of this excellent performance. As the last quarter of the year draws to a close, the most recent statistics reveal a remarkable growth of around 400%. According to a recent study by on-chain data company Messari, this far surpassed ethereum's dismal 3% gain.
Source: Messari
The research firm claims that several protocols located within the Layer 1 (L1) blockchain network have completed a series of token airdrops, which is what is responsible for the recent surge in new demand for Solana.
On December 16, decentralized exchange (DEX) trading volume on Solana temporarily surpassed that of ethereum for the first time. This occurred as the smart contract-enabled blockchain ecosystem continued to expand.
Solana currently trading at $76.7377K territory. Chart: TradingView.com
According to data from DeFillama, ethereum trading volume during that time was only $1.164 billion, while DEX trading volume on the blockchain exceeded $1.5 billion.
Bitfinex greets Solana
One of the world's largest cryptocurrency exchanges, Bitfinex, recently tweeted about Solana's expansion. The tweet claims that in the previous three months alone, the price of SOL has increased by more than 340%.
Good day, @solarium family! Today is a great day to celebrate the 343% growth of $SOL. From $19.80 per SOL 3 months ago to $67.94 today! Stay optimistic.https://t.co/Ltajh1l15C
—Bitfinex (@bitfinex) December 18, 2023
Three months later, the token's value had risen to $67.94 from $19.80 at the beginning of its bullish surge.
As this unfolded, Jupiter, one of the largest decentralized finance (DeFi) protocols on Solana and an exchange aggregator, revealed that its long-awaited airdrop of 4 billion JUP tokens would occur in January.
$SOL is in a tear.
For the first time since 2021, the SOL/eth price ratio saw a sharp reversal as the Solana network recovers from the devastating FTX collapse. pic.twitter.com/hAlCC23Yq0
– Kaiko (@KaikoData) December 19, 2023
Meanwhile, data analytics provider Kaiko said that Solana is seeing a sharp rise in price and that the price ratio of SOL to eth is reversing strongly.
The Solana (SOL) to ethereum (eth) ratio is close to 0.04, according to a post on X published on December 19. Previous highs were around 0.06 in 2021 and lows were around 0.01 in early 2023.
At the time of writing, the price of SOL is currently trading at $77.40a 3.5% increase over the last day and a 17% increase over the last week, CoinMarketCap data shows.
Featured image from Shutterstock
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