Solana has been fighting for a while, and analysts believe that SOL will soon reach a market cap of over $100 billion by 2024, making it the fifth-largest cryptocurrency therein. With a market cap in the range of $73 billion, it currently ranks fifth, just behind Binance Coin.
Currently, the four top positions of cryptocurrencies are Bitcoin, Ethereum, Tether, and Binance Coin. On the other hand, huge investment in SOL’s heft has been bolstered by major investors getting onboard and asset inflows to Smart Finance on the Solana chain, signaling the start of a big sine curve over the coming month.
Robinhood Crypto’s announcement of staking on the Solana chain for European customers has sparked an increase in network activity. Following the announcement, deposits flooded in, pushing the price over 13.01% higher in the last day alone. Solana has been at the center of several headline-making developments in the digital asset space this year, including the successful launches of Dogwifhat and Book of Meme, two novel memecoin projects.
These launches highlighted the speed and low costs that the blockchain provides. On May 12, Solana surpassed Ethereum for the first time in the crucial metric known as maximal extractable value, despite ongoing concerns regarding the network’s dependability in light of previous incidents. The protocol’s more than sixfold increase in value since this time last year highlights the remarkable momentum propelling its continuous ascension.
While Robinhood Crypto is offering an initial ten percent bonus on purchases to attract investors, the future growth of Solana is less certain. The project has shown remarkable gains over the past year as developers flock to its platform.
Yet, surpassing Ethereum as the number two cryptocurrency by market capitalization remains a significant challenge. To reach such an ambitious goal, it would be necessary to continue the pace of recent months, as well as a strong commitment from the core team to address any technological challenges.
In recent times, Solana has faced notable technical difficulties. There have been rumors that Pantera might set up a significant fund to buy the majority of SOL tokens from FTX’s bankruptcy proceeding, which was available at a steep discount with lengthy lockups. This potential acquisition could negatively impact Solana’s market capitalization, reaching the desired 100 billion-dollar mark.
A further threat is posed by Grass, an ambitious new AI data initiative that is constructing its own Layer 2 infrastructure directly on Solana. On the contrary, this has prompted online critics to cast doubt on the capabilities of Solana, considering the blockchain’s history of vulnerability to excessive network congestion, invalidator malfunctions, and software flaws. The failure rate of operations on Solana’s mainnet has escalated to 75% due to the exponential growth of transactions.
This typically forces users to repeatedly renew attempts or wait for confirmations on their purchases, pushing customers further away from the chain. While the prospects are promising for the time being, Solana believes that resolving these technical issues could potentially give the blockchain a good chance to reach 100 billion dollars in market capitalization in 2024. However, we must wait and see.