Following an astounding 120% monthly surge in December, Solana’s token faced a cooling period in the days after Christmas. Despite this retracement, its market capitalization surpassed that of Binance’s BNB.
Solana’s price dipped below the $100 mark before stabilizing just above $101 in the pre-holiday hours, Investing Insider reported on Sunday.
Currently, Solana is trading at $105, representing a 14% decline from its annual peak of $123 on December 26, as reported by TradingView data.
Unexpectedly, Binance’s native token, BNB, experienced a 9% uptick in its price, reclaiming its position as the fourth-largest cryptocurrency by market capitalization.
Solana’s rally also had a ripple effect on SOL-based meme coins like Bonk (BONK) and Dogwifhat (WIF).
These meme coins witnessed remarkable price actions in the past few weeks, with Bonk posting gains of 650% and Dogwifhat skyrocketing by a staggering 123,000% between November 22 and December 22.
However, both meme coins retraced by over 50% from their all-time highs, coinciding with Solana’s dip just three days after it reached its yearly high on December 26.
READ MORE: Chinese Authorities Bust $2.2 Billion Crypto Underground Banking Operation
In tandem with Solana’s price surge, there was a surge in trading activity on the Solana network.
This surge briefly caused trading volumes on SOL-based decentralized exchanges (DEXs) to surpass those on Ethereum, marking a significant milestone.
However, Solana DEX volume has since decreased, currently standing at $1.1 billion over the last 24 hours, roughly half of Ethereum’s $2 billion, according to DefiLlama data.
In addition to Solana’s performance, Ethereum has also gained traction, with a 5% weekly increase.
Many traders and analysts are speculating that Ethereum could soon outperform its competitors in the crypto market.
In conclusion, despite a cooling period in Solana’s token price after its impressive December rally, the cryptocurrency market remains dynamic and subject to unexpected fluctuations.
The competition among top cryptocurrencies, such as BNB, Ethereum, and Solana, continues to shape the landscape of the digital asset market.
Discover the Crypto Intelligence Blockchain Council
