- Solana is currently the fifth largest digital asset.
- SOL price rose to an ATH before retracing.
In an interesting turn of events, Solana (SOL) briefly overtook Tether (USDT) to claim the fourth-largest spot in the cryptocurrency rankings by market capitalization.
This rise was driven by a remarkable rise in the price of SOL, which surged to a high of $295 in the last trading session.
While SOL has since returned to fifth position with a market capitalization of $126 billion, the question remains: Could Solana challenge Ethereum (ETH) next?
Memecoin mania fuels Solana
Solana’s brief USDT reversal was fueled by a significant increase in network activity, attributed to the launch of the OFFICIAL TRUMP memecoin.
The memecoin debut on Solana brought substantial liquidity, increased trading volumes, and increased investor interest.
Early reports show that the token has gained attention on social media, increasing adoption and transactions on the Solana blockchain.
Notably, daily transactions soared to 850,000, while trading volume exploded from $9 billion to $20 billion in 48 hours. Additionally, Solana’s total value locked (TVL) reached an unprecedented $11.3 billion.
Technical indicators signal strong momentum
Solana price action demonstrated strong technical strength, with the 50-day moving average at 210.10 maintaining a healthy gap above the 200-day MA at 175.90.
The RSI reading of 69.44 suggests strong momentum while leaving room for further upside. A trading volume of 1.73 million SOL indicates substantial market engagement during this rally.
Source: TradingView
Ethereum’s market position remains formidable
Meanwhile, Ethereum was trading at $3,393.63, supported by its 50-day MA at 3,536.84. With a market cap above $411.3 billion, ETH has maintained a significant lead over Solana’s current $126 billion valuation.
To challenge Ethereum’s position, SOL would need to reach around $850, assuming current supply levels remain constant.
Source: TradingView
Can Solana turn around Ethereum?
Despite its decline to fifth place with a market capitalization of around $126 billion, Solana’s trajectory presents some interesting possibilities.
The spread between SOL and ETH stands at approximately $285 billion, suggesting significant upside potential if network activity maintains its current momentum.
However, the sustainability of this growth largely depends on organic adoption beyond speculative memecoin trading.
Looking ahead, SOL’s immediate challenge is to maintain momentum above $250 while growing sustainable use of the network.
Although the TRUMP token has catalyzed impressive growth, long-term success will require broader ecosystem development and continued technical robustness.
Is your wallet green? Check out the SOL Profit Calculator
The recent market cap milestone demonstrates Solana’s potential to challenge established players, although toppling Ethereum remains a significant task requiring more than temporary enthusiasm for the memecoin.
As the network matures, its ability to attract and retain substantial development activity will likely determine its position in the crypto hierarchy.
