Solana (SOL) has been on an impressive upward trajectory, breaking through the $190 barrier on Monday following the surge of Bitcoin price. Over the past two weeks, SOL's price has risen steadily, reaching $185 and surpassing Binance Coin (BNB) in market capitalization. This surge has propelled Solana to the fourth spot among the largest cryptocurrencies.
Quick Take
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Solana (SOL) price rises above $190, increasing over 5% in the last 24 hours.
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SOL surpasses Binance Coin (BNB) to become the fourth largest cryptocurrency by market cap.
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Institutional interest and potential ETF approval drive Solana’s price surge.
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Solana's market performance showcases resilience amid overall market fluctuations.
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Solana vs. BNB Chain: which one is better?
The driving force behind this rally includes growing institutional interest and the anticipation of a Solana ETF. According to CoinShares, SOL saw the most inflows of any altcoin after Ethereum in the week ending July 20, indicating substantial confidence from large investors.
Solana surpasses BNB in terms of market cap | Source: TradingView
Read more: Solana Flips Ethereum in Daily Active Addresses in June: CMC H1 2024 Report
Institutional Inflows and ETF Speculation
One significant catalyst for Solana's rise is the speculation around a potential Solana ETF. Following the approval and launch of Ethereum spot ETFs, many market participants believe Solana could be next. VanEck, a major asset manager, has hinted at the possibility of a Solana ETF, sparking further interest. This speculation has been a key factor in SOL's recent price increase.
Read more: VanEck Files for First Solana ETF in the U.S.: A Potential Game Changer?
SOL Price Analysis: Can Solana Break $200 and Test $250?
SOL/USDT price chart | Source: KuCoin
Currently trading at $191, SOL has formed a bullish double-bottom pattern, with analysts predicting a breakout could lead to significant gains. If SOL breaks above $200 and establishes it as a support level, the next target is $245, bringing it closer to its all-time high of $260. However, failure to maintain this momentum could see SOL drop to $175, invalidating the bullish outlook.
SOL Funding Rate History Chart | Source: CoinGlass
The positive sentiment around Solana is reflected in the growing interest from institutional investors. Data from Coinglass reveals an increase in long positions, indicating confidence in SOL's bullish potential. However, the broader market context remains volatile, and investors should stay cautious.
Solana vs. BNB Chain: Which Is Better in 2024?
As Solana overtakes BNB in market cap, a comparison of the two platforms is essential.
Solana (SOL) Boasts High Throughput and Rapidly Growing Ecosystem
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Performance: Solana boasts high throughput and low transaction fees, making it a preferred choice for decentralized applications (dApps) and non-fungible tokens (NFTs).
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Institutional Interest: Significant inflows from institutional investors and potential ETF approval.
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Development: Continuous network upgrades and growing ecosystem support its strong performance.
BNB Chain (BNB) Supports DeFi Protocols and Binance Ecosystem
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Performance: BNB Chain, formerly Binance Smart Chain, offers robust infrastructure and high-speed transactions, supporting a wide range of dApps and DeFi projects.
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Utility: BNB token is integral to the Binance ecosystem, providing various use cases, including fee discounts and staking.
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Community Support: Strong backing from the Binance exchange and its user base.
Read more: BNB Chain Loses $1.6B to Rug Pulls, Hacks Since 2017: Immunefi Research
Conclusion
Solana's rise to the fourth-largest crypto by market cap highlights its growing prominence in the crypto market. While SOL's recent performance and institutional interest suggest a bright future, the market remains volatile. Investors should monitor key technical indicators and remain cautious. Both Solana and BNB Chain offer unique advantages, and their performance in 2024 will depend on continued innovation and market conditions.
