- SOL’s Price Increase: Solana’s (SOL) price recently spiked to nearly $70, prompting discussions about its potential to surpass Ripple’s (XRP) market cap by the end of 2023.
- Factors for Market Position: The likelihood of SOL overtaking XRP hinges on the regulatory environment, specifically Ripple’s SEC lawsuit outcome, and the overall crypto community sentiment.
- Drivers of Solana’s Surge: Solana’s growth is linked to the broader positive crypto market trend, institutional interest, Coinbase’s SOL perpetual futures listing, and endorsements from industry figures like Cathie Wood.
Can SOL Surpass XRP?
Solana’s native token – SOL – has captured much attention lately due to its considerable price increase. It spiked to almost $70 on November 16, a figure last observed in May 2022. Its market dynamics have become a trendy topic among cryptocurrency participants, with some wondering whether an additional rally could be on the cards before the year’s end.
According to the AI-powered language model ChatGPT, SOL could continue its uptrend in the remaining months of 2023 and even surpass the market capitalization of Ripple’s native token – XRP – should several critical factors be in place.
One such element is the regulatory environment. ChatGPT estimated that a favorable update surrounding the lawsuit between Ripple and the US SEC could benefit XRP, meaning it would be tough for SOL to catch up with the pace.
The overall sentiment across the community is also worth observing. The general feeling of investors toward a certain crypto asset could play a role in its price swings, while positive news and partnerships might also propel a bull run.
“While it’s possible for Solana to surpass Ripple in market cap, such an event would depend on a complex interplay of the above factors and others that might emerge. It’s always advisable for investors to conduct thorough research and consider the inherent risks involved in cryptocurrency investments,” ChatGPT concluded.
What Stands Behind SOL’s Recent Rally?
Solana’s latest ascend could be attributed to the overall green wave in the cryptocurrency market, the rising interest from institutional investors, Coinbase’s interaction, and many other factors.
Recall that the US-based cryptocurrency exchange recently listed SOL perpetual futures on its international exchange and Coinbase Advanced. The service gives clients additional leverage to bet on the token’s price movements. It also makes Solana more accessible to institutional investors globally, who often use Coinbase as a venue to trade digital currencies.
Last but not least, SOL’s surge came shortly after Cathie Wood (CEO of ARK Invest) praised the asset’s merits and described it as “faster and more cost-effective than Ether.”