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Solana (SOL) has flipped Binance Coin (BNB) to become the fourth largest cryptocurrency by market capitalization, prompting investors to wonder if the Ethereum (ETH) flippening is next.
Solana’s flipping Binance Coin
According to the latest data from CoinMarketCap, Solana's market capitalization is now $89.3 billion, higher than BNB's $85.6 billion. This development comes amid a broader crypto market rally, with Solana trading at $201, representing an increase of 35.14% over the past week.
Solana’s increase in market capitalization demonstrates its growing supremacy in the crypto space and its development as a formidable rival to established competitors such as Ethereum. One of the factors contributing to Solana’s uptick is the recent accumulation of the cryptocurrency by large investors, referred to as “whales.”
Additionally, Solana's rise is supported by strong on-chain metrics, which show increased use and a thriving environment. The price has frequently found higher lows, which is a bullish indicator in technical analysis.
Moreover, Solana accounts for a considerable portion of the worldwide decentralized finance (DeFi) TVL statistics. So far, Solana's DeFis have already attracted over $4 billion in investment.
Is Ethereum next?
Many investors are wondering if Solana's performance against Binance Coin foreshadows a potential challenge to Ethereum's dominance. Currently, Ethereum’s market capitalization is standing at $430.2 billion.
Before the Dencun Upgrade was implemented last week, Ethereum has long struggled with scalability issues and high gas fees, limiting its capacity to grow successfully for widespread adoption. This provides a basis for flipping by Solana if the Dencun Upgrade does not provide the hoped for results.
An earlier report by U.Today shows that the DeFi ecosystem saw a major transformation as power shifted between Solana and Ethereum. At the time, DefiLlama data showed that Solana had flipped Ethereum in terms of total decentralized exchange (DEX) volume.
Meanwhile, Solana's improved scalability and cheaper transaction costs make it a strong competitor for Ethereum. While Ethereum's recently launched Dencun Upgrade aims to address some of these scalability difficulties, it remains to be seen whether it can compete with platforms like Solana in the near term.
Tomiwabold Olajide
Alex Dovbnya
Denys Serhiichuk
