Today, Solana (SOL), the fifth-largest cryptocurrency, has overtaken the popular payment service PayPal in terms of market capitalization. Following last week’s 5.51% rise in the SOL market price, the token price rose to $175.3, taking its capitalization to over $83.56 billion.
At the same time, PayPal is currently valued at $83.52 billion, according to Yahoo Finance. So, at first glance, Solana is certainly more expensive, in a purely figurative sense, than the largest electronic debit payment system, which was founded in 1998 with the participation of Elon Musk.
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However, we cannot honestly say that all Solana tokens in circulation are cumulatively more expensive than all PYPL shares. In reality, both calculations involve the multiplication of price and quantity, but the nature of the assets and the markets in which they are traded have a significant impact on the interpretation and meaning of their respective market capitalizations.
In reality, PayPal stock is valued based on the company’s future revenue potential and assets, while Solana’s value is determined based on network usage, token utility, and market sentiment. .
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But considering it’s been almost a year since Solana was founded, Solana’s success is undeniable. In fact, one of the most popular altcoins started its meteoric rise in mid-October of last year, with the SOL token price fluctuating between $17.89 and $30.36 for an extended period of time for the next 147 days. It increased by 847.26%.
