Bitcoin is on an upward trajectory, aiming to break past its two-year peak, currently maintaining a robust position above $48,300. This advance comes even as trading volumes shrink, a scenario predicted amid diminishing GBTC sales and the rising prominence of other ETFs. Concurrently, the battle for market supremacy intensifies between Solana and Binance Coin (BNB), with both cryptocurrencies showing strong market movements.
Solana’s Surge and Market Cap Challenge
The enduring competition between Solana and BNB recently saw Solana momentarily overtake BNB in market capitalization, securing the fourth spot. Now, with a market cap growth of roughly $160 million, Solana is poised to repeat this feat. Current data from Coinmarketcap highlights a 12% market value increase for Solana over the past week, placing its market cap close to $48.1 billion, with BNB just ahead at $48.26 billion. Indicators such as the Relative Strength Index and Chaikin Money Flow suggest that Solana’s price might continue its ascent, potentially eclipsing BNB.
The bullish outlook for Solana is supported by data from Santiment, which shows a positive trend in its Binance Funding Rate. The derivatives market appears bullish, with a rise in long positions and open interest, indicating a buying sentiment. Despite this, Solana’s current price may appear inflated when assessing the total value locked in its network. Contributing to this overvaluation are speculative activities and the buzz from airdrops on the Solana network.
Solana’s Network Strength and TVL Growth
Investors in Solana have reasons to be optimistic as the total value locked (TVL) on its network has not only recovered to $1 billion but is also nearing the $2 billion mark. This signals a potential reversal of the significant TVL decline experienced in 2022. A continued increase in Solana’s TVL may solidify its position above BNB in the rankings, be it permanently or temporarily.
While not widely noted, Solana’s network transaction revenues have been reaching new heights since the end of the previous year, suggesting heightened network activity surpassing that of the bull market period. This uptick is indicative of Solana’s active community engagement and the network’s underlying strength.