After successfully reaching a market capitalization of $83.56 billion earlier today, Layer-1 network Solana (SOL) has overtaken popular financial service provider PayPal.
According to market data, the price of SOL has recorded a 6.34% Week-to-Date (WTD) increase. At press time, SOL traded at $174.51, a price action that pushed its market cap to the current level.
Judging Solana And PayPal by the Market Cap
Solana remains the fifth-largest cryptocurrency by market cap. According to Yahoo Finance, PayPal’s market cap is $83.52 billion. With its current market cap, Solana is more valuable than the electronic debit payment system.
– Advertisement –
However, this is more figurative because no one can categorically conclude that Solana tokens in circulation are cumulatively more expensive than all PYPL shares. The nature of the assets and the different markets they trade are crucial to interpreting their respective market caps.
For more context, Paypal’s future revenue potential and assets are usually considered when valuing its stock. Meanwhile, only network utilization, token utility, and market sentiment are consulted in Solana’s case.
Despite these differences, Solana’s success is undisputed, considering it is only a few years old.
Will Solana Compete With Wells Fargo Soon?
In addition to Solana, the stocks of other top firms have climbed to new levels. This has helped underscore the bullish atmosphere in the broader financial landscape.
According to Yahoo Finance, Wells Fargo stock is worth $65.49 and has a market cap of $223 billion. Considering how much Solana is gaining traction in the crypto market, observers are speculating whether it will topple Wells Fargo soon, too.
While this valuation comparison is not necessarily a determinant of success, it shows how value can shift. Solana bridges new-age cryptocurrencies and the legacy duo Bitcoin and Ethereum.
By capturing value across both divides, the protocol is now taking on Wall Street reviews.
What is Driving SOL Success?
In the meantime, analysts and market experts are checking to see the driver behind Solana’s surge. The bullish signals are likely not due to a single factor or event but a wave of positive ecosystem trends.
On October 27, a major Binance wallet staked 150,011 SOL, which amounted to approximately $26.25 million at the time of the transaction. SOL price reacted to this transaction by registering a slight gain.
Another contributor to Solana’s outlook is the rise in memecoin activity. Specifically, new Solana-based memecoins are outpacing their old counterparts. Even memecoin launchpad Pump.Fun contributed approximately $29.5 million of Solana’s $61.7 million fee revenue over the past month. At this rate, analysts see the potential for SOL to hit the $200 milestone soon.
Top analyst CryptoExpertPro highlighted three key patterns to watch for a future SOL price surge. These include the formation of a bull pennant, a giant cup and handle, and volatility contraction amid the current price range.
From his analysis, the combined technical signals could raise Solana’s price to at least $300 to $400. Further reinforcing this possibility, Solana’s Total Value Locked (TVL) recently hit $6.433 billion, its highest amount since Jan. 2022.
