Solana Market Position Shifts: Overtaken by BNB After a Remarkable Rally and Subsequent Retrace

Solana Market Position Shifts: Overtaken by BNB After a Remarkable Rally and Subsequent Retrace

Crypto News – Solana, once celebrated as the fourth-largest cryptocurrency in terms of market capitalization, has recently ceded this position to BNB. Following a stellar rally in December, where it experienced a remarkable 120% surge, Solana market cap briefly exceeded that of Binance’s BNB. This impressive growth, however, was not sustained. Post-Christmas, the cryptocurrency witnessed a cooling in its price trajectory.

The downturn in Solana’s value saw it dip below the $100 mark, lingering for some time around the $101 level, reminiscent of its pre-holiday prices. At the time of this report, Solana is trading at approximately $105, marking a 14% decline from its annual peak of $123 achieved on December 26, according to data from TradingView.

Concurrently, BNB experienced a surprising 9% increase in its price, enabling the Binance-affiliated token to regain its status as the fourth-largest cryptocurrency by market cap.

The rise of Solana also fueled significant movements in various SOL-based memecoins, notably Bonk (BONK) and Dogwifhat (WIF). These tokens saw extraordinary market movements in recent weeks, recording gains of 650% and a staggering 123,000%, respectively, between November 22 and December 22. Nonetheless, both memecoins have since experienced a sharp decline, losing over 50% from their peak values, coinciding with the period three days prior to Solana hitting its annual high.

This period of rapid growth in Solana’s value was paralleled by a spike in trading activities on its network. For a brief moment, the trading volumes on SOL-based decentralized exchanges (DEXs) surpassed those on Ethereum, marking a significant milestone. However, this surge was short-lived. Solana DEX volumes have since decreased to around $1.1 billion in the past 24 hours, about half of Ethereum’s $2 billion, as per data from DefiLlama.

In the meantime, Ethereum has also been making strides, recently posting a 5% increase on a weekly basis. This development has led many traders and analysts to speculate that Ether might soon begin to outperform its rivals in the cryptocurrency market.