As SOL recovers to a new high, it threatens to overtake both Tether (USDT) and Cardano (ADA). These sit just $5-6bn ahead in terms of market cap.
SOL Hits New ATH
SOL’s first breakout came in August, when it exploded from just $43 to $200 in less than a month. However, after September’s volatility hit the entire cryptocurrency market, and the SOL network suffered a large outage, the cryptocurrency dropped to a low of $124 in mid-September.
In the month since, SOL has rebounded. It is currently up 57% in the last 30 days, outperforming all cryptocurrencies in the top 10.
For SOL to reach a market cap of $70.6bn and overtake ADA, it will need to rise 8.6% (around $235), assuming ADA remains at its current level.
After SOL hit its new ATH, holders celebrated the milestone on social media.
SOL’s rapid price ascent is likely a symptom of its continued DeFi expansion. The Solana ecosystem now has a total value locked (TVL) of $13.75bn according to DefiLlama, beating its previous TVL high of $11.67bn in early September.
Solana-based projects such as Saber, Radium, Sunny, and Orca all contribute over $1bn to the Solana ecosystem. The ecosystem is able to attract projects due to its higher number of transactions per second and lower fees.
In comparison, the Ethereum and Binance networks have TVLs of $163.5bn and $20.72bn, respectively. However, Solana has just 26 projects running on its blockchain, while Ethereum has 272, and Binance has 133.
Read More: Solana NFTs: Here's Where To Buy SOL NFTs
[Image: Solana/Rajiv Bajaj]