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Solana (SOL) is surging, threatening to surpass XRP as the third-largest cryptocurrency by market value. Solana’s growth is driven by network upgrades, the Jito airdrop, and its inclusion in Robinhood’s cryptocurrency offerings in the European Union, highlighting the volatile and ever-changing nature of the crypto market.
Solana (SOL) has exhibited a remarkable performance, placing it on the brink of overtaking Ripple’s XRP as the third-largest altcoin by market capitalization. This development marks a significant change in the digital currency landscape, reflecting the dynamic nature of the crypto market.
Solana (SOL) has experienced a remarkable surge in its market value, gaining 13.88% in the last 24 hours alone. This impressive performance has boosted its seven-day growth rate to 24.45%, propelling SOL to an impressive price of $77.25 at the time of writing.
In contrast, XRP has faced challenges, with negative growth in the past day. Although it boasts a cumulative one-week growth rate of 12.24%, XRP’s market valuation has risen by 7.45% to $37 billion in the last 24 hours. Additionally, XRP’s trading volume has taken a substantial hit, plummeting by 11% as market participants traded $1.6 billion worth of XRP in the past day.
Just three months ago, Solana occupied the ninth position among the most prominent cryptocurrencies, lagging behind digital assets like Dogecoin, Cardano, and the stablecoin USDC. However, Solana’s recent surge has allowed it to leapfrog ahead of these cryptocurrencies, with XRP now in its sights.
Community Debates SOL’s Potential Overtake
The possibility of Solana surpassing XRP has ignited debates within the XRP community. While some argue that this development holds little significance, others believe it could impact the confidence of XRP investors. Notably, prominent XRP YouTuber Moon Lambo maintains that another cryptocurrency outperforming XRP does not necessarily indicate an inherent flaw in choosing XRP as an investment. He believes that XRP will have its moment to shine, stating,
“Eventually, XRP will run too, and then it will be proven that none of the fear was necessary. Everyone will eventually see that it never mattered.”
The astounding growth of SOL is evident when compared to its value just 90 days ago. In September, SOL was trading at $19.609, and it has since experienced exponential growth, exceeding 266%. In contrast, over the same 90-day period, XRP’s growth has been comparatively modest, rising by only 26%.
The Role of Network Upgrades
A key factor behind Solana’s meteoric rise is a pivotal network upgrade within the Solana ecosystem. A researcher at the renowned on-chain analytics firm Messari commended Solana developers for implementing numerous upgrades to address previous issues. The researcher noted, “Between improving liveness and liquidity, the case for Solana has arguably never been stronger than it is today.”
Another significant influence on SOL’s valuation could be the Jito airdrop that reached eligible Solana users. These individuals received 10% of the overall supply of 1,000,000,000 JTO tokens. Some users had previously staked small amounts of SOL, resulting in substantial holdings of the newly introduced asset. It’s worth noting that JTO’s price experienced initial volatility, reaching $6 before decreasing by over 50% in the following hours. JTO serves as the governance token of the Jito Foundation, an entity focused on enhancing the staking economy and improving the Solana ecosystem through JitoSOL and associated products.
Additionally, the interaction with Robinhood may contribute to SOL’s rising valuation. The American financial services company expanded its cryptocurrency trading offerings to eligible European Union (EU) clients. Users now have access to over 25 digital assets the firm supports, with Solana being one of the prominent choices.
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