Solana Overtakes Binance Coin in Popularity
Solana and Binance Coin are two prominent altcoin projects in the cryptocurrency space. While they are similar in function, they do represent different platforms, and in 2024, Solana surpassed Binance Coin to become the fourth largest cryptocurrency in terms of market capacity.
Read on to learn more about Solana and Binance Coin, their uses, and whether or not you should consider an investment in these cryptocurrencies.
Solana Passes Binance Coin to Become the Fourth Largest Cryptocurrency
Over the past two years, cryptocurrencies have been in a bit of a rough spot, as prices declined and crashed, many individuals sold their shares of altcoin projects to favor other investments like gold and the US stock market. However, while most coins experienced a downturn, the same can’t be said for Solana.
Solana, while it did initially experience a drop in 2022 like most cryptocurrencies, has actually be on a steady trajectory of growth, despite the market downturn. Not only that, but market capacity has been steadily increasing, until it bypassed Binance Coin in March 2024 to become the fourth most traded cryptocurrency.
Additionally, Solana is currently pricing at about $200 per coin, which is very close to its all-time high of $250 per coin, something which can’t be said for most cryptocurrencies.
While this might not seem like a big deal, when you consider all the cryptocurrency altcoin projects which are launched each day, it is quite the milestone to be the fourth largest, right next to Bitcoin, Ethereum, and Tether (the only stablecoin to make the top 3). This is especially notable when you consider that similar projects, like Cardano and Polkadot, rank 8th and 12th respectively.
What is Solana?
Solana is a level 1 blockchain platform built to rival similar platforms like Ethereum. With an infrastructure that allows the creation of decentralized apps or Dapps, Solana was originally designed to be a cheaper alternative to Ethereum.
Solana is run by the Solana Foundation, which is based in Switzerland, although the project was originally born in San Francisco. Anatoly Yakovenko is the mastermind behind Solana and his whitepaper was originally released in 2017.
Solana was built with scalability in mind, meaning it processes many more transaction per minute than most of the larger blockchains. In fact, it is now able to process 710,000 transactions per second, making it the fastest blockchain to date. Solana runs on both a proof-of-stake consensus mechanism as well as a proof-of-history one which uses timestamps to verify transactions.
Related: Solana (SOL): A High TPS Blockchain Solution
Why Did Solana Pass Binance Coin?
There are lots of reasons that these cryptocurrencies changed spots on the current charts, but most of it is due to the legal trouble Binance has been facing, as well as the fact that Solana is favored in international markets, which haven’t been hit as hard by the recession that the United States is currently facing.
We also like to think that Solana, in general, is a more viable product that Binance and that people are starting to see its value as a technology and as a rival to Ethereum.
Should You Invest in Solana?
It is well known that investing in cryptocurrency can be risky, and Solana is no exception, however, unlike many other cryptocurrency projects, Solana is quickly rising to become a worth investment.
While there is still no guarantee that an investment in Solana will lead to monetary benefits, Solana is proving time and time again that it is more stable than other altcoins, and that it can play on the same level as Ethereum, something this recent news has proven.
So, while we still don’t recommend investments into altcoins as an unseasoned investor, Solana is one to consider as long as you understand the risks associated. Especially considering its consistent growth trajectory during what has been one of the largest cryptocurrency market downturns.
What is Binance Coin?
Although both Solana and Binance Coin are mentioned in the same article, it’s important to recognize that they are very different things. While Solana is a blockchain platform similar to Ethereum, Binance Coin is a coin belonging to blockchain trading platform. Binance Coin is a utility token and can only be used to pay for certain things—it is not a platform that engineers can build on.
Binance Coin was created by the Binance trading platform which was founded by Changpeng Zhao. Although there have been some recent money laundering charges against him by the SEC, the Binance platform is still one of the most reputable platforms for exchanging cryptocurrency.
Binance Coin was originally an ERC-20 token built on the Ethereum platform, but due to its massive popularity, it has become its own entity.
Related: The CEO of Binance Pleads Guilty to Fraud Charges
Should You Invest in Binance Coin?
As we see it, Binance Coin isn’t an investment in a technology like Solana is, but rather it is an investment in a platform. If you believe in the viability and use of the Binance trading platform, or use it regularly, then it might be worthwhile to invest in Binance Coin.
That being said, considering the recent allegations of the SEC and the fact that Binance trading isn’t allowed within the United States in most cases, we consider Binance Coin to be a risky investment, unless you are buying the utility tokens for the purpose of spending them regularly.
In conclusion, passing Binance Coin to become the fourth largest cryptocurrency of all time is quite the feat for Solana, and we are happy that more people are getting on board with cryptocurrency technology. It will be interesting to see if Solana can pass Tether next to truly rest with the largest coins of all time, Ethereum and Bitcoin.
The MintDice blog is committed to your cryptocurrency education, but it is important to note that we are not investment advisors. Any investment advice in this article should be discussed with a financial professional prior to investing in any cryptocurrency.
Related: Can You Buy Crypto on Robinhood?
