The cryptocurrency market has been lively following the recent US elections, with Solana (SOL) taking the lead by surging 15.8% and surpassing Binance Coin (BNB) to secure the fourth position in terms of market capitalization, resulting in a 3% overall market increase.
With SOL exceeding the $180 mark, experts are now looking at a potential rise towards $250. After a remarkable 30.5% monthly growth, many are now closely monitoring SOL’s performance.
Considerations Beyond SOL’s Overtaking of BNB
Interestingly, Solana hasn’t just displaced BNB but has also emerged as the top performer among the top 5 alternative coins, attracting a significant amount of liquidity away from Bitcoin.
This marks the second consecutive time that Solana has demonstrated strength in the crypto market. During the market retractions in Q3, SOL maintained its position above its breakout points while most other altcoins struggled.
Furthermore, SOL recorded a daily increase of over 11%, slightly outperforming BTC on the day of the election outcomes, while Ethereum saw a 4% surge.
Consequently, there’s a noticeable shift in the market dynamics. Previously a top choice for attracting capital amid bullish movement in BTC, Solana is now gradually surpassing Ethereum.
The flippening of BNB strongly validates this transition. Should this trend persist over the long term, SOL could potentially reach a $100 billion market capitalization, setting its sights on Ethereum’s position next.
Evaluating the Possibilities
SOL’s breakout above $180 signals a breakout from an 8-month consolidation phase that began after SOL hit its annual peak of $202, aligning with BTC hitting $73K.
In the last 24 hours, SOL’s daily trading volume has surged by 210%, reaching $10.7 billion, with its market capitalization climbing by 14.66% to $88.1 billion.
Consequently, SOL has surpassed BNB, which boasts an $85 billion market cap, cementing its position as the fourth-largest cryptocurrency by this metric.
Supported by a bullish MACD crossover on the daily chart, the likelihood of SOL testing levels above its annual peak remains robust.
A breach of the $200 mark, unseen since March, could potentially propel SOL to surpass its previous all-time high of $260 in the upcoming weeks.
If this momentum persists, SOL’s market cap has the potential to reach $100 billion. However, achieving this milestone may require BNB to underperform.
A Close Competition for Dominance
As BNB approaches a critical resistance level at $600, monitoring its performance in the near future is crucial.
According to a recent report from CryptoCrypto, there’s a short-term bullish forecast for BNB, indicating a probable consolidation within a defined range unless substantial accumulation transpires.
This situation might present an opportunity for Solana supporters to maintain SOL’s fourth-place position, which could be vital for attracting investments amidst escalating market volatility.
While the current momentum is driven by Bitcoin hitting a new all-time high and a pro-crypto stance in Congress, SOL might experience a setback if it fails to hold its support level, potentially slipping below BNB.
In essence, Solana has achieved significant milestones this quarter, positioning itself as a high-cap token of choice for stability as Bitcoin enters a more risky phase.
Although SOL currently has an edge over BNB, breaking the previous all-time high of $260 would further confirm this trend.