Is Solana (SOL) Ready to Bounce Back After Binance Coin (BNB) Reclaimed Its Spot?

TL;DR

• Solana (SOL) has seen a price drop to $105 and a fall in market capitalization, resulting in it losing its top four crypto ranking to Binance Coin (BNB).
• BNB is experiencing a significant rise, with a recent 25% increase in price in a week and a market cap surpassing $50 billion.
• Solana has a rebound potential due to its strong trading volume and success in the NFT market.

The Latest Shift in the Crypto Market

One of the best performers in the past several weeks (and throughout the entire year) – Solana (SOL) – has recently lost some ground, with its price sliding to $105 (per CoinGecko’s data) and its market capitalization dropping below the $45 billion mark.

As such, the token lost its position as the fourth-largest crypto asset, with Binance Coin (BNB) taking its place. 

The latter has been on a significant uptrend lately, experiencing a price increase of 25% in the past week and reaching almost $330 (the highest mark since May 2023). In addition, its market cap has exceeded the $50 billion level for the first time in eight months.

BNB Market Cap, Source: CoinGecko

Can Solana (SOL) Respond to the Attack?

It is worth noting that SOL’s recent pullback might be just a minor correction, which could be followed by another rally in the near future. One factor supporting that thesis is the booming trading volume on the blockchain protocol as of late. According to DefiLlama, that figure has been well above $1 billion since the middle of December.

SOL Trading Volume, Source: DefiLlama

The network has also gained traction in the non-fungible token field. Solana NFT’s sales volume has exceeded $83 million in the past seven days, outpacing Ethereum, whose figure currently stands at approximately $74 million.

The difference between SOL’s market capitalization and BNB’s is “just” $5 billion as of the moment and it’s interesting to see which one will come on top during the upcoming year.

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