Solana Makes Power Play, Dethrones BNB to Claim Crypto Crown #4 

Solana Makes Power Play, Dethrones BNB to Claim Crypto Crown #4 

In a remarkable turn of events, Solana (SOL) has not only maintained its upward trajectory but has also now surpassed Binance Coin (BNB) in market capitalization, securing the fourth position just a day after overtaking XRP. The surge, a substantial 18% increase in the past 24 hours, has propelled Solana’s market cap to $41.9 billion, outshining BNB’s $41.8 billion. 

Solana’s current price stands at $98.40, reflecting its robust performance over the day. This surge is part of a broader trend, with SOL gaining over 30% in the past week, emerging as a standout performer among major cryptocurrencies. Despite this notable achievement, Solana still has ground to cover in comparison to Ethereum’s market cap, which currently stands at $269 billion. 

From $10 Dip to Top 4 Crypto in a Year

The last time Solana held the fourth position was in November 2021, during the peak of the bull market cycle, with a market cap of $75 billion. However, it lagged behind BNB, which held a market cap of $108 billion. Notably, Solana experienced a significant dip in price, closing out 2022 at just below $10, primarily attributed to its association with the defunct FTX exchange and former crypto billionaire Sam Bankman-Fried. Fast forward a year, and SOL has skyrocketed to almost $100, marking it as one of the most successful crypto assets of the year. 

Google Trends data further underscores Solana’s growing popularity, with searches for Solana approaching those for Ethereum in the United States. However, amid this surge, technical analysts caution about the potential for a major market correction before the year concludes. 

On December 21, Solana commemorated the year in its “Solana Solstice” celebration and annual review, highlighting key events such as the Bonk (BONK) hype, the launch of the Saga mobile device, integration of artificial intelligence, and strategic institutional partnerships. 

Beyond Bitcoin: Can Coinbase Be TradFi’s Crypto Index Fund? 

In parallel, the cryptocurrency landscape is witnessing notable developments, and analysts are closely examining the role of major players like Coinbase in traditional finance. Will Clemente, co-founder of Reflexivity Research, suggests that Coinbase shares could serve as an “index play” for traditional finance firms seeking broad exposure to the cryptocurrency sector. He emphasizes Coinbase’s diverse verticals, making it an attractive option for investors uncertain about which assets to choose beyond Bitcoin. 

Matt Hougan, Chief Investment Officer of Bitwise, shares optimism about Coinbase’s future, stating, “I think Coinbase is executing better than any financial services company in America.” Bitwise predicts that Coinbase’s revenue will double by 2024, with the possibility of surpassing that estimate. Bitwise operates a Crypto Industry Innovators exchange-traded fund (ETF), holding Coinbase shares. 

While Wall Street might view Coinbase primarily as an exchange, Clemente argues that the platform is rapidly evolving beyond that label. Its expansion into staking, ETF custody, Circle investment, and the launch of Base showcase a strategic move towards diversifying its offerings and challenging traditional perceptions. 

However, challenges persist for Coinbase, including an ongoing legal battle with the United States Securities and Exchange Commission (SEC). Additionally, proposed bills by U.S. senators seeking to restrict cryptocurrency activity could impact Coinbase’s operations. Base, Coinbase’s Ethereum layer-2, has faced security issues, including hacks and exit scams, such as the $6.5 million Magnate Finance exit scam, and the $865,000 exploit on RockSwap. 

Notably, Cathie Wood’s ARK Invest recently offloaded a significant number of Coinbase shares, raising questions about investor sentiment. ARK Innovation ETF, managed by ARK Invest, sold over 900,000 Coinbase shares since December 5, totaling $331 million. 

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Chad Butler
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Chad Butler

Chad Butler, a renowned name in crypto journalism, excels in translating complex blockchain topics into lucid prose. His astute analyses and timely updates make him a trusted voice in the cryptocurrency landscape. Through his articles, Chad consistently offers readers an informed and insightful perspective on the evolving digital market

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