Solana’s 300% Surge: Token Airdrops & 9x Ethereum Gap Unveiled

In the latest report from Messari comparing the fundamentals of Solana and Ethereum, SOL has showcased an impressive resurgence, outpacing its rival by nearly 300% Year-to-Date (YTD). Despite this, Solana’s valuation stands at just a fraction of Ethereum’s, trading at approximately 9 times lower, with a circulating market cap of $31 billion compared to Ethereum’s $267 billion. 

📊 @solana has been rising from the ashes with an increasingly active ecosystem, with $SOL outperforming $ETH by nearly 300% YTD.

However, SOL's valuation trades nearly 9x lower than ETH with a $31 billion circulating market cap versus ETH’s $267 billion. pic.twitter.com/WXWzGrsiDp

— Messari (@MessariCrypto) December 18, 2023

The fourth quarter of the year witnessed a remarkable surge in SOL’s active addresses, surging by almost 400%, starkly contrasting Ethereum’s modest 3% increase. According to Messari, the sudden uptick in demand for Solana can be attributed to a series of token airdrops conducted by protocols within the Layer 1 blockchain network.

Pyth, the Solana-based oracle network, distributed 250 million PYTH tokens worth around $77 million to early users on November 20th. Following suit, Jito executed an airdrop of native tokens valued at $225 million to select users on December 7. Jupiter’s highly anticipated airdrop of 4 billion JUP tokens is scheduled for January.

The airdrops, along with the surging value of BONK, have driven Solana’s network activity. This has led to a 30% increase in SOL’s value over the last month. Messari notes that this surge has solidified Solana as the second-largest chain by decentralized exchange (DEX) volumes. It closely rivals Ethereum for the top spot in this regard.

The decentralized finance (DeFi) and non-fungible token (NFT) ecosystems on Solana have experienced substantial growth. Its DEX volume has surged by 255% in the last 30 days, with Jupiter, a DEX aggregator, contributing to nearly 60% of the total volume. Additionally, the NFT vertical on Solana has witnessed an impressive 500% increase in sales volume over the last 90 days.

Solana Poses Challenge

The native coin SOL has now claimed the position of best performer in the crypto market. The Solana (SOL) price has recently experienced bullish momentum, posing a challenge to XRP’s position. The surge in value is closely associated with the increasing popularity of the meme coin BONK on the Solana blockchain.

Moreover, the surge in BONK’s value, marked by an 80% weekly increase, finds its roots in recent listings on major exchanges, including Binance and Coinbase. This widespread support has thrust BONK into the mainstream, contributing significantly to SOL’s ascent in the crypto hierarchy.

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