On December 20, SOL, Solana’s own coin, went through a big jump. It went up by 13.8% and went over $82 for the first time since May 2022. This was a 33.5% rise in the last two weeks, making SOL the fourth-largest cryptocurrency by market value (not counting stablecoins) and passing XRP in the process.
This rise has made people talk about Ethereum’s place in the market, especially since Solana is faster and cheaper for transactions. People have said that Solana’s focus on mobile usability is a big part of why it’s getting so many new users. With its high processing power and low transaction fees, the network handles token and nonfungible token (NFT) starts quickly and efficiently, which greatly improves the user experience.
The recent rise in the price of SOL is due to a number of things, such as a rise in network activity and the instant success of new SPL token launches based on Solana. But a more in-depth look is needed to see if this price level is sustainable and if another rise above $100 is a reasonable hope.
Will probably be burned at the stake for this
— Evanss6 (@Evan_ss6) December 15, 2023
There’s no denying the momentum Solana has and how important @solanamobile is in that going forward
The UX of shitcoining on Solana is way better than mainnet or any L2 rn. New users -> Solana
Pressure is on Ethereum ecosystem 🔜
A lot of people were excited about the SOL price increase because of a number of airdrops, especially when Solana’s Saga phone sold out and then went up in price on secondary markets.
After the SPL token JITO was added to big centralized exchanges on December 7, all eyes were on Solana. The launch of JITO, a coin for the Jito liquid staking protocol based on Ethereum’s Lido, was a huge success. Its market capitalization soared to over $300 million very quickly after trading started on Coinbase and Binance.
When Coinbase added the memecoin BONK on December 14, the Saga phone once again became a talking point. Each phone came with 30 million BONK, which were worth more than the $599 price tag on the phone itself. This news caused a lot of action in the Solana ecosystem, even though Solana’s founder had said before that the phone project might be put on hold.
It’s not just memecoins that are making SOL grow. A huge rise in decentralized application (DApp) activity has been seen on the network. It was worth $654 million as of November 29th, giving Solana only 1.4% of the market. DefiLlama says that this amount has since risen to $1.28 billion, a 96% rise.
There has been a lot more action in the Solana Network’s DApps along with the rise in deposits. Solana has done better than many of its top competitors in terms of network volume and the number of unique active addresses that connect with its DApps.
![What drove SOL's rise above XRP in market cap race? image 79](https://i0.wp.com/nosisnews.com/wp-content/uploads/2023/12/image-79.png?resize=1024%2C562&ssl=1)
![What drove SOL's rise above XRP in market cap race? image 79](https://i0.wp.com/nosisnews.com/wp-content/uploads/2023/12/image-79.png?resize=1024%2C562&ssl=1)
People are getting more involved with Solana because they are looking forward to new coin launches and airdrops on the network, such as Bonkwifhat (BIF), Ribbit (RBT), Jupiter (JUP), Meow Coin (MEOW), Phantom, Kamino, Drift, and others. These changes have brought in more users and raised the network’s TVL, which has strengthened Solana’s place in the DApp market even more.
Trezor, a well-known hardware wallet maker, also said it would accept Solana and its SPL tokens, which was good news for the project. Also, Binance Research’s positive study on parallel computing used Solana as an example to show how the network makes good use of computing resources to boost blockchain throughput.
To sum up, SOL’s path to a $100 value makes sense when you look at how Solana’s network activity has been growing steadily and how it can handle higher demand without going down, which isn’t the case with some competing chains. Solana has a bright future in the cryptocurrency market thanks to its steady performance and growing popularity.
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