The cryptocurrency market experienced a significant downturn earlier this week, losing over 11% of its total capitalization in a single day. Major coins bled heavily—except for Solana (SOL). While most projects struggled, Solana continued its upward trajectory, defying market trends.
Solana's Remarkable Growth
According to CoinGecko, Solana recorded an 86.9% price increase over the past seven days, outperforming all other top-10 cryptocurrencies. This surge propelled SOL past XRP, securing the #6 spot in market capitalization rankings for the first time.
Key Highlights:
- SOL price surge: +86.9% (7-day performance).
- New milestone: Overtakes XRP in market cap ranking.
- Current SOL price: ~$208 (up from $141 at the week’s start).
Why Solana Is Outperforming the Market
Solana’s price action has been parabolic since early August, with weekly candles showing increasingly larger gains. The current weekly candle reflects a 48% rise, signaling strong bullish momentum.
However, technical indicators suggest SOL is extremely overbought, warranting caution for new long positions. Strength metrics like the ADX confirm sustained bullish dominance.
XRP’s Struggles
XRP underperformed due to:
- Bitcoin-driven market movements.
- Ongoing legal uncertainties.
- A sharp 18% drop on September 7, 2021, pushing its price down to ~$1.00.
These factors contributed to Solana’s rise above XRP in the rankings.
Strong Fundamentals Fueling Solana’s Rise
Solana’s ascent isn’t just speculative—it’s backed by robust blockchain fundamentals:
- Developer Adoption: Top dApp developers favor Solana for its scalability and low fees.
- NFT Boom: Projects like Degenerate Ape Academy choose Solana over Ethereum.
- DeFi Growth: Total Value Locked (TVL) exceeds $7.5 billion, per DeFi Llama.
👉 Why Solana is being called the "Ethereum Killer"
Recent Milestones
- Flipped Dogecoin last week.
- Entered the Top 10 just last month.
FAQs
Q: Is Solana’s growth sustainable?
A: While short-term corrections are possible, Solana’s strong fundamentals and developer activity suggest long-term potential.
Q: Why did XRP drop in ranking?
A: Legal issues and broader market downturns impacted XRP’s price and market cap.
Q: What makes Solana different from Ethereum?
A: Solana offers faster transactions and lower fees, making it attractive for DeFi and NFTs.
Q: Should I invest in SOL now?
A: Due to its overbought status, consider waiting for a pullback or diversifying cautiously.
👉 How to stake Solana for passive income
Conclusion
Solana’s rise reflects both market optimism and technological superiority. As it cements its position among top cryptos, its role as a leading "Ethereum alternative" seems increasingly justified.
For real-time SOL price updates, check CoinGecko.