Solana Flips XRP, Outpacing Bitcoin and Ethereum Recovery

While the rest of the market is reeling from this morning's sharp drop, SOL has climbed another notch into the Top 10. After a morning fall that wiped off 13% of the entire cryptocurrency market cap and stifled most of the gains made by top cryptocurrencies over the previous week, the market is slowly regaining ground—albeit with some ups and downs in recent hours. Solana (SOL), the fastest-recovering top coin, has reclaimed a new rank in the Top 10.

According to CoinGecko data, the price of Solana has increased by 12% in the previous 24 hours to $177 per coin. It's the only non-stablecoin in the top ten cryptocurrencies by market size to have gained ground in the last day, as Bitcoin, Ethereum, Cardano, and other cryptocurrencies have all seen significant losses this morning.

Solana's price fell by roughly 17% in an hour this morning, although it has since regained much of that value. Solana has now surpassed Ripple's XRP to become the sixth-largest cryptocurrency by total market cap, with $51.3 billion versus $51.1 billion for XRP. Solana only recently flipped Dogecoin for the #7 spot, and he wasn't even in the top 10 until last month. At a current price of $1.10, XRP has lost more than 20% of its value in the last 24 hours.

According to CoinGecko, the value of Solana has risen substantially over the last month, rising 351 percent in the previous 30 days. SOL has set numerous new all-time highs along the way. According to CoinGecko data, SOL reached a high of $56.20 in May. SOL broke through that level on August 16, and its price has more than tripled in the three weeks afterwards.

Solana, which was founded in 2018, is seen as a serious competitor to Ethereum, which is now the most popular blockchain platform for smart contract-based applications. Smart contracts are bits of code that carry out specific instructions, and they're at the heart of a slew of decentralized applications, including DeFi protocols (peer-to-peer lending and trading) and even non-fungible assets like photos and video files.

Recently, Solana has witnessed an increase in both DeFi and NFT usage, thanks to the introduction of popular NFT collections such as Degenerate Ape Academy and Aurory. Before the release of each of those sets, the price of SOL soared, as collectors piled up the coin in the hopes of acquiring one of the rare randomized profile images.

Another notable Solana project, the upcoming crypto game Star Atlas, has made NFTs available for purchase today. The game's marketplace is "experiencing capacity challenges due to strong demand," according to its Twitter account, as fans compete for tokenized digital spacecraft created for the eventual release of a playable game.

In recent weeks, the value of SOL locked in DeFi protocols has also increased dramatically. According to data from DeFi Llama, there are currently around $5.9 billion worth of assets locked inside DeFi platforms on Solana, up from $1.49 billion a month ago on August 7. During that period, however, the real number of SOL locked in DeFi protocols has declined by 7%, despite the fact that the value of each coin has skyrocketed.

In the end, though, Solana's increased activity pales in contrast to Ethereum's. The great majority of the rapidly booming NFT ecosystem is now built on Ethereum, with DeFi protocols on the network holding $121 billion in assets.

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