Solana
Is Solana’s rise a sign of Cardano’s decline? – Is it time to shift your investments?
Solana’s rise challenges Cardano’s market position, but can Cardano reclaim its relevance in 2024?
- Solana’s speed and ecosystem growth have eclipsed Cardano’s stagnation in recent months
- Cardano’s challenges in scaling and engagement threaten its once-dominant position in blockchain
As Solana’s [SOL] rapid rise continues, many are questioning whether it signals the end of Cardano’s [ADA] reign in the blockchain space.
Cardano, once a promising leader, has faced challenges in gaining widespread adoption. Meanwhile, Solana’s speed, low fees, and expanding ecosystem have garnered attention.
In this article, AMBCrypto will analyze Solana’s rise, explore Cardano’s hurdles, and assess if Solana’s growth is pushing Cardano out of the spotlight, or if there’s still hope for Cardano to reclaim its position in the market.
Solana’s meteoric growth vs. Cardano’s struggles
From September to December 2024, Solana outshone Cardano with its fast transaction speeds and minimal fees. Solana’s robust ecosystem growth also played a key role. It can process over 65,000 transactions per second, which attracted many projects and users.
This surge drove SOL’s price above $240 in November, then it consolidated near $216 as volume declined. Solana’s OBV remained strong, reflecting continued market interest. Despite this, the RSI dipped toward 44, indicating short-term cooling.
Source: TradingView
Cardano, on the other hand, faced structural hurdles. While ADA briefly surged to $1.20 in November, its lack of notable network upgrades and slower throughput—capped at around 250 transactions per second, limited the coin’s momentum.
Cardano’s RSI hovered near neutral at 50, signaling investor indecision, while OBV flat lined, suggesting weak capital inflows.
Source: TradingView
Solana’s ecosystem expansion, fueled by DeFi and NFT adoption, has positioned it as a clear market leader.
Meanwhile, Cardano’s challenges in scaling and developer engagement have kept it lagging, leaving its once-prominent market position under threat.
Solana dominates in…
Source: DefiLlama
The charts show a significant disparity in TVL. SOL boasts a TVL of $9.007 billion, dwarfing Cardano’s $555.13 million. This highlights SOL’s strong DeFi adoption. SOL also leads in market metrics, with a market cap of $106 billion compared to Cardano’s $38 billion.
Solana collected $3.37 million in fees over 24 hours, indicating higher network activity. In contrast, Cardano reports $0 in fees, indicating limited user engagement.
Source: Santiment
In the social volume charts, SOL shows consistent upward spikes, correlating with increased on-chain activity and investor interest. Cardano’s social engagement remains fairly inconsistent and mostly muted, aligning with its flat TVL and price performance.
These metrics highlight Solana’s robust ecosystem growth and dominance in both user adoption and network value, leaving ADA struggling to maintain relevance.
Is it time to shift investments?
Solana’s dominance in speed, adoption, and ecosystem value has clearly set it apart from Cardano in recent months. Solana’s metrics signal a thriving network, while Cardano’s limited upgrades and flat metrics suggest stagnation.
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However, market cycles are rarely linear—Cardano retains a loyal community and may pivot with future developments.
Investors should weigh SOL’s rapid growth against potential risks like network congestion and consider Cardano’s long-term roadmap. For now, SOL’s momentum is undeniable, but Cardano’s story is far from over.
