The war of dominance has begun. Data from CoinMarketCap shows that Solana and BNB Chain, two popular smart contract platforms after Ethereum, are emerging as strong competitors.
In a post on X, a crypto analyst grades that SOL and BNB, native currencies of Solana and the BNB Chain, respectively, have been growing, subsequently expanding the market limits of their respective platforms. However, even with this price increase, it has not yet reached the 5% level, the target of the proponents of both platforms.
![Solana Pursues BNB Network, Race to 5% Market Dominance Heats Up 1 Solana versus BNB network dominance | Source: X Analyst](https://thegurumedia.com/wp-content/uploads/2024/03/GIlNtbVbgAM9Lhz.jpg)
Will Solana flip BNB to fourth place?
When the analyst shared In the March 14 screenshot, BNB Chain, powered by Binance Coin (BNB), maintained a slight lead with a 3.34% dominance, while Solana trailed behind with 2.72%.
However, Solana is in shambles. Not only is the coin outperforming Bitcoin and Ethereum, but it has also been expanding rapidly, faster than BNB in recent weeks of trading. At the time of writing, data from CoinMarketCap shows that SOL is trading above $170, a multi-month high.
Furthermore, it rose 11% in the last trading day and 20% in the previous trading week. With this valuation, SOL’s market capitalization increased by 12%, to more than 75 billion dollars, consolidating its position in fifth place, behind BNB.
On the other hand, BNB remains in fourth place, behind USDT–the most liquid stablecoin, whose market value is more than US$103 billion. BNB was up 2% the day before, but double digits in the last week of trading. Overall, the lack of inactivity, especially on the last day of trading, means that its total market capitalization of over $90 billion is stable, adding just 2% on the last day.
When comparing the performances of Solana and BNB, the former has the advantage. For example, as of September 2023, SOL has gained over 200% against BNB. BNB pared January’s losses, but Solana’s recovery, considering the success of meme coins, means SOL could extend gains in the future.
Solana Rally on FTX Bankruptcy Process, BNB Escapes Regulatory Issues
As competition intensifies, the future remains uncertain. It is unclear whether SOL will overtake BNB to claim the second most dominant smart contract spot after Ethereum.
However, at the time of writing, what is certain is that the increase in on-chain activity on Solana and the unfolding events surrounding the FTX bankruptcy case could boost SOL prices. Therefore, it is highly likely that Solana’s dominance could catch up to BNB as the race to the 5% level intensifies.
In November 2023, Binance sat down with US regulators, including the Securities and Exchange Commission (SEC), agreeing to pay a $4.3 billion fine. As part of the deal, its co-founder, Changpeng Zhao, also had to step down as CEO. Although BNB prices initially plunged, the token has steadily recovered from the $300 level.
Featured image from Shutterstock, charts from TradingView
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