Solana (SOL) Flips Binance Coin (BNB) in Market Cap, Sets Sights on Ethereum (ETH)

Following Donald Trump's inauguration on January 20, 2025, Solana officially flipped BNB in market capitalization.

Solana (SOL) has officially surpassed Binance Coin (BNB) in market capitalization, making it the fifth-largest cryptocurrency.

According to data from CoinGecko at the time of writing, Solana’s market cap stood at $123 billion, while BNB was at $100 billion. This marks a significant milestone for Solana, which has seen impressive growth in recent months.

Solana’s rise can be attributed to several factors, including its reputation as a high-performance blockchain known for its scalability and speed. The network has become increasingly popular among users and developers, leading to substantial developments across its ecosystem.

Among these advancements are notable increases in transaction fees, stablecoin market cap, and total value locked (TVL). These achievements showcase a strong comeback for Solana following the setbacks of late 2022, particularly the collapse of FTX, and serve to highlight its enduring relevance within the blockchain space.

Having overtaken BNB's Binance Smart Chain (BSC) in market cap, Solana’s sights are now set on a larger target: Ethereum. This rivalry between SOL and ETH, as the dominant blockchain, underscores Solana’s aspiration to claim a greater share of the decentralized economy.

Rising Solana’s TVL Shows Strengthening EcosystemSolana's recovery becomes more evident as its TVL surges past $10 billion for the first time since FTX collapsed.

Solana boasts a TVL of $13.902 billion, outshining several major chains, including TRON, Bitcoin, Binance Smart Chain (BSC), Base, and Arbitrum.

For the uninitiated, TVL is a crucial metric that gauges the total value of user assets locked in smart contracts. It serves as an indicator of investor confidence in blockchain ecosystems.

Hence, Solana’s ability to break past the critical $10 billion mark signifies a renewed trust from investors, who are regaining faith in the network following the setbacks triggered by FTX’s downfall.

Data from DefiLlama highlights that Solana has attracted substantial new assets in recent months. Following the FTX financial crisis, Solana’s TVL took a hit. However, it has since recovered and set new records.

This sustained growth in Solana’s TVL showcases its strengthening appeal among investors and developers. As a top blockchain platform, Solana continues to host innovative DeFi projects and fosters liquidity.

Solana’s Fees Boosts & Stablecoin Market Hits New MilestoneSolana experienced rapid growth as transaction fees spiked during the launch of the TRUMP token.

In just 10 minutes, the network recorded a record-breaking 6,000 SOL tokens in fees, highlighting a significant increase in network utilization.

Despite a drop in daily transaction volume from 450,000 to 150,000, transaction fees continued to rise, as reported by Glassnode.

The elevated fees and fewer transactions reflect how increased network adoption has begun to strain the system. As more users seek services on the network, transaction costs have escalated, potentially impacting the overall performance of the blockchain.

Solana’s transaction fees have consistently risen as user activity intensifies. High-profile events like the TRUMP token release pushed fees to peak levels.

This surge in fees signaled growing demand. However, it also stressed the network’s capacity to manage it efficiently.

Moreover, the recent high-profile event has put increased pressure on the network, but the fact remains strong that the Solana blockchain has seen significant growth due to this strain.

The growth is evident in most metrics, particularly with its stablecoin market cap surpassing $9 billion, reflecting a 53.98% increase over the past week.

Furthermore, it signaled strong network adoption and usage of stablecoins, primarily driven by USDT and USDC.

In the last 30 days, the supply of USDT and USDC on Solana has grown by 90%. That further cemented Solana’s position as a key player in the stablecoin market. USDC leads the pack, holding 76.23% of Solana’s stablecoin market cap.

This surge in stablecoin transactions reflected the growing trend of traditional financial assets integrating into DeFi. Solana’s stable performance positions the blockchain to support the increasing demand for stablecoins.

The views, and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.