Solana Chasing BNB Chain, Race To 5% Market Dominance Heats Up
March 14 2024 - 3:00PM
NEWSBTC
The dominance war is on. CoinMarketCap data shows that Solana and
BNB Chain, two popular smart contracts platforms after Ethereum,
are emerging as strong contenders. In a post on X, one crypto
analyst notes that SOL and BNB, the native currencies of Solana and
BNB Chain, respectively, have been growing, subsequently expanding
the market caps of their respective platforms. However, even with
this price uptick, it has yet to attain the 5% level, a target for
proponents of the two platforms. Will Solana Flip BNB To
Fourth? When the analyst shared the screenshot on March
14, BNB Chain, powered by Binance Coin (BNB), held a slight lead
with a 3.34% dominance, while Solana trailed behind at 2.72%.
Related Reading: Solana Smashes Major Resistance Levels, New
All-Time High Imminent? However, Solana has been on a tear. Not
only is the coin outperforming Bitcoin and Ethereum, but it has
been expanding rapidly, faster than BNB in the past few trading
weeks. When writing, CoinMarketCap data shows that SOL is trading
above $170, a multi-month high. Moreover, it is up 11% on the last
trading day and 20% in the previous trading week. At this
valuation, SOL’s market cap is up 12% to over $75 billion,
cementing its position at fifth, trailing BNB. On the other hand,
BNB remains at fourth, behind USDT–the most liquid stablecoin whose
market cap stands at over $103 billion. BNB is up 2% the previous
day but double digits in the past week of trading. Overall, the
lack of inactivity, especially on the last trading day, means its
total market cap, at over $90 billion, is stable, only adding 2% on
the last day. When comparing the performances of Solana and BNB,
the former has the upper hand. For example, from September 2023,
SOL gained over 200% versus BNB. BNB pared losses from January, but
the revival in Solana, considering the success of meme coins, means
SOL might extend gains in the future. Solana Rally On FTX’s
Bankruptcy Case Proceedings, BNB Shakes Off Regulatory Woes As the
competition intensifies, the future remains uncertain. It’s unclear
whether SOL will overtake BNB to claim the second most dominant
smart contract spot after Ethereum. However, at the time of
writing, what’s certain is that the spike in on-chain activity on
Solana and the unfolding events around the FTX bankruptcy case
could bolster SOL prices. Therefore, it’s highly probable that
Solana’s dominance might catch up with BNB as the race to the 5%
level intensifies. Related Reading: Brace For Impact:
MicroStrategy Is Planning Another $500 Million Bitcoin Purchase In
November 2023, Binance settled with United States regulators,
including the Securities and Exchange Commission (SEC), agreeing to
pay a $4.3 billion fine. As part of the deal, their co-founder,
Changpeng Zhao, also had to resign as CEO. While BNB prices
initially plunged, the token recovered steadily from the $300
level. Feature image from Shutterstock, charts from
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