After the championship rally Solana (SOL), platforms for the most popular cryptocurrency products DeFi and NFT, have established at the top of the leading cryptocurrencies in terms of capitalization. SOL has finally overperformed Ripple (XRP), a cryptocurrency that is under pressure due to the SEC lawsuit. Formally, Tether (USDT) is included in the TOP-5, but USDT is a stablecoin. Therefore, the net TOP-5 cryptocurrencies are bitcoin together with ETH, ADA, BNB, and SOL.
Ripple (XRP) two years ago launched its successful product On-Demand Liquidity, ODL. This is a great solution for fintech companies that provides fast and cheap cross-border transfers. In order for ODL to stay attractive to users and to providers, Ripple kept XRP from rising by throwing large amounts of tokens onto the market from time to time. This annoyed traders and investors but made bankers and providers happy.
Ripple was considered as a “bridge” to fiat currencies through central bank digital currencies (CBDCs). But 2021 showed that XRP is not joined the mainstream of the cryptocurrency industry. In addition, the cryptocurrency was harmed by the prosecution by the SEC, which is going on for a long time. All together led to the fact that XRP is the only major cryptocurrency that has not updated its all-time high since 2018.
The most attractive cryptocurrency assets this year are platforms for launching digital finance (DeFi) projects, as well as which support the new fad, non-fungible tokens (NFT). Cardano (ADA) has risen in anticipation of the Alonzo update, which will add smart contracts to its blockchain on September 12th.
Solana (SOL) has become the growth record holder in recent weeks. Its blockchain is characterized by high transaction speed due to the combination of two consensus algorithms, Proof-of-Stake and Proof-of-History. Developers begin to actively work on the platform, and this fact attracts investors. In just one day, SOL has risen in price by 30% and renewed its all-time high above $ 200. As early as July 18, the price of the coin was about $ 25. The growth of 8x is a confirmation of Solana’s performance from the side of developers and investors.
In the near future, Solana may outperform Binance Coin (BNB) and will continue to develop as an aggressive competitor to Ethereum. However, Ethereum is still the leader in altcoins and the best platform for smart contracts for the big community of developers. According to the DefiLlama service, $ 123.2 billion is locked in Ethereum smart contracts, while Solana has only $ 7.7 billion. But that may change if the Ethereum team is too slow to develop its network, which is often overloaded and annoying users with high fees.