Solana Shifts XRP, Becomes The Fifth Largest Crypto Based On Market Cap

JAKARTA - Solana (SOL), one of the rising cryptocurrencies, managed to surpass XRP and occupy the fifth largest position in the crypto market. This is based on the latest market capitalization data as of December 20, 2023, the aggregator version of the crypto price movement, Coinmarketcap.

Solana has a market capitalization of US$34.8 billion (Rp540.6 trillion). Meanwhile, XRP, a coin developed by Ripple, has a market capitalization of US$33.3 billion (Rp516.7 trillion).

Solana was able to reach this position thanks to impressive price performance, while XRP was relatively stagnant. In the last 24 hours, Solana rose 12.08%, well above the market average increase of 2.8%. While XRP only increased 1.67%.

At the time of writing, Solana's price was 81.45 US dollars (IDR 1.26 million) per coin, while the price of XRP was 0.62 US dollars (IDR 9,622) per coin. This price difference is due to the supply amount of each coin, which does not affect market capitalization.

Solana is a cryptocurrency focused on scalability, speed, and low cost. Solana claims to be able to process more than 50,000 transactions per second at a cost of less than a penny per transaction. Solana also supports various decentralized applications (dApps) in the fields of gaming, NFT, DeFi, and others.

Causes Of Solana Price Increase

The cause of Solana's rise in prices is still unclear, although it seems Solana has experienced significant growth. SOL prices have gradually risen since at least October, meaning that important events such as the launch of Solana's GameShift package, FTX asset transfer involving SOL tokens, and enthusiasm around Solana-based memecoin BONK, have also affected the movement of the SOL price in recent months.

On-chain activity rather than public events may also contribute to the growth. Recent reports show, for example, that Solana's decentralized exchange has recently outperformed its Ethereum-based competitors in terms of trading volume.

Not only that, Solana recently achieved success with its Saga phone. Even though the sale of blockchain-based phones had plummeted, the phone was sold out in the US after the explosion of Solana-based BONK memecoins.

SOL also suffered a sudden loss in November 2022 when FTX, which is closely linked to it, went bankrupt. However, these incidents did not stop the overall growth of SOL, but also had an impact on the movement of the SOL price.