TL;DR

Solana’s SOL token has shown impressive performance this year, with significant growth in price and market capitalization, making it one of the top digital currencies in the market.
Future growth potential for SOL hinges on factors like technology adoption, overcoming past network issues, regulatory developments, and potential strategic partnerships, which could enhance its market value and utility.
Despite its progress, SOL’s market cap is still behind major players like Ethereum, but it has surpassed them in certain metrics like trading volume and NFT sales volume in recent times.

Can Solana (SOL) Progress Even More Next Year?

Solana’s native token – SOL – has been a top performer this year, with its price reaching almost $125 earlier this week. The token has skyrocketed by over 1,000% since January 1, while its market capitalization briefly surpassed the $50 billion mark and is currently standing at around $48 billion (per CoinGecko’s data).

This uptrend has made SOL the fourth-largest digital currency in the entire market, outpacing Binance Coin (BNB) and Ripple (XRP).

In the following lines we will take a deeper dive and check whether the asset’s progress could continue next year with SOL becoming the biggest alternative coin in the realm. 

According to ChatGPT, such a scenario is not out of the cards but hinges on on multiple elements. One major factor is the possible adoption of the asset’s technology and network. Solana is known for its low costs and fast transaction speed, which makes it a preferred ecosystem for decentralized applications. 

The AI-powered chatbot also estimated that SOL’s future success depends on coping with some issues that have caused reputational damage to the blockchain protocol in the past. Recall that Solana has experienced numerous network outages in the last few years.

Regulatory development was also outlined as a vital factor. According to ChatGPT, the implementation of favorable rules in the crypto industry could have a positive impact on SOL.

Last but not least, the chatbot pointed out possible partnerships that the blockchain entity might strike up with prominent organizations. Such strategic collaborations could enhance SOL’s utility and adoption, potentially boosting its market value.

Despite its rapid recent progress, SOL’s market capitalization is still far from Ethereum’s (almost $270 billion) and the one of USDT ($91 billion), meaning it has a long way to go before being throned as the largest altcoin.

Solana has Already Surpassed Ethereum in These Metrics

It is worth noting that Solana has performed better than its rival for the top – Ethereum – in some aspects. According to DefiLlama, trading volume on Solana has surged above $1.3 billion in the past few days. For the most part of the month, Ethereum was lagging behind.

SOL Trading Volume, Source: DefiLlama

Solana has also performed quite well in the non-fungible token space, registering an NFT sales volume of over $88 million in the last week. Ethereum has fallen behind with approximately $74 million for the same period.

What is more, Solana flipped Ethereum in terms of search volumes on Google, which is a testament to the growing interest in the cryptocurrency.

The post We Asked ChatGPT if Solana (SOL) Can Become the Biggest Altcoin in 2024 appeared first on CryptoPotato.

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Filed under: Bitcoin - @ December 30, 2023 9:16 am