- SOL Price Increase: The price of Solana (SOL) recently climbed to nearly $70, sparking discussions about its potential to surpass the market cap of Ripple (XRP) by the end of 2023.
- Market position factors: The likelihood of SOL surpassing XRP depends on the regulatory environment, particularly the outcome of Ripple’s SEC lawsuit, and general sentiment in the crypto community.
- Factors behind the rise of Solana: Solana’s growth is tied to the broader positive trend in the crypto market, institutional interest, the listing of Coinbase’s SOL perpetual futures, and support from industry figures like Cathie Wood.
Can SOL outperform XRP?
Solana’s native token – SOL – has recently attracted a lot of attention due to its considerable price increase. It climbed to nearly $70 on November 16, a figure last seen in May 2022. Its market dynamics have become a trending topic among cryptocurrency participants, with some wondering if further rally could be on the cards before the end of the year.
According to the AI-based ChatGPT language model, SOL could continue its upward trend over the remaining months of 2023 and even surpass the market capitalization of Ripple’s native token – XRP – if several critical factors were in place.
One of these elements is the regulatory environment. ChatGPT opined that a favorable update regarding the lawsuit between Ripple and the US SEC could benefit XRP, meaning it would be difficult for SOL to catch up.
The general sentiment within the community is also worth observing. General investor sentiment towards a certain crypto asset could play a role in its price fluctuations, while positive news and partnerships could also propel an uptrend.
“While it is possible for Solana to overtake Ripple in terms of market capitalization, such an event would depend on a complex interplay of the above factors and others that may emerge. Investors are always advised to conduct thorough research and consider the risks inherent in cryptocurrency investments,” concluded ChatGPT.
What’s behind SOL’s recent rally?
Solana’s latest rise could be attributed to the overall green wave in the cryptocurrency market, growing interest from institutional investors, Coinbase interaction, and many other factors.
Recall that the US-based cryptocurrency exchange recently listed SOL perpetuals on its international exchange and Coinbase Advanced. The service provides clients with additional leverage to bet on the price movements of the token. It also makes Solana more accessible to institutional investors around the world, who often use Coinbase as a platform to trade digital currencies.
Last but not least, the rise of SOL came shortly after Cathie Wood (CEO of ARK Invest) rented the merits of the asset and described it as “faster and more profitable than Ether”.