- Solana is currently the fifth largest digital asset.
- The price of SOL went up to ATH before going back.
In an interesting turn of events, Solana (SOL) briefly surpassed Tether (USDT) to take the fourth largest spot in the cryptocurrency rankings by market capitalization.
This increase was driven by a remarkable rally in the price of SOL, which rose to a high of $295 in the last trading session.
While SOL has since returned to the fifth position with a market cap of $126 billion, the question remains: Could Solana challenge Ethereum (ETH) next?
Memecoin mania fuels Solana
Solana's short conversion of USDT was triggered by a massive increase in network activity, due to the launch of the OFFICIAL TRUMP memecoin.
The debut of memecoin on Solana has brought great clarity, spicy trading volumes, and heightened investor interest.
Early reports indicate that the token has captured the attention of social media, increasing adoption and transactions on the Solana blockchain.
In particular, daily transactions increased to 850,000, and trading volume exploded from $9 billion to $20 billion within 48 hours. In addition, the total value of Solana locked (TVL) reached an unprecedented $11.3 billion.
Technical indicators indicate a strong trend
Solana's price action showed strong technical strength, with the 50-day moving average at 210.10, maintaining a healthy gap above the 200-day MA at 175.90.
An RSI reading of 69.44 suggested a strong move while leaving room for further upside. A trading volume of 1.73M SOL indicated significant market engagement during this rally.
Source: TradingView
Ethereum market conditions are still amazing
Meanwhile, Ethereum was trading at $3,393.63, supported by its 50-day MA at 3,536.84. With a market capitalization exceeding $411.3 billion, ETH 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 stable.
Source: TradingView
Can Solana Convert Ethereum?
Despite pulling back to the fifth position with a market cap of about $ 126 billion, Solana's path provides interesting opportunities.
The gap between SOL and ETH stands at around $285 billion, suggesting significant upside potential if network activity maintains its current trend.
However, the sustainability of this growth is highly dependent on organic adoption beyond speculative memecoin trading.
Looking ahead, SOL has the immediate challenge of sustaining a move above $250 while building sustainable network usage.
While the TRUMP brand has fueled impressive growth, long-term success requires broader ecosystem development and continued technical strength.
Is your portfolio green? Check out the SOL Profit Calculator
The recent market cap milestone shows Solana's ability to challenge established players, although moving Ethereum is still a big undertaking that requires more than a temporary memecoin commitment.
As the network matures, its ability to attract and retain substantial development activity may determine its position in the crypto hierarchy.
Source: https://ambcrypto.com/solana-flips-usdt-for-a-few-hours-is-ethereum-the-next-target/
