The ratio between Solana and Ethereum just surged to a new record high above 0.066 on Wednesday as hype grows that SOL could soon overtake ETH.
The SOL/ETH ratio surged 3.5%, breaking sharply above its August record high of around 0.06450.
The surge comes amid continued growth in Solana network activity at a time when Ethereum network activity is less impressive.
For example, the Solana blockchain has consistently enjoyed DEX trading volumes north of $2 billion per day for the last four days and is rising, per DeFi Llama.
Conversely, DEX trading volumes on Ethereum have remained stagnant over the past few months, between $1 and $2 billion.
A similar trend can be seen in the growth of the dollar value of crypto locked on the respective blockchains.
Solana’s TVL has surged to its highest since early 2022, above $6.4 billion, and remains in a strong uptrend, per DeFi Llama.
Conversely, Ethereum’s TVL is going sideways around $48 billion, down sharply from earlier yearly highs in the $65 billion area.
Solana offers significantly faster transaction speeds and significantly lower fees than Ethereum.
As a result, it has become the go-to blockchain for meme coin traders, with tokens like dogwifhat (WIF), Bonk (BONK), and Popcat (POPCAT) making waves in 2024.
However, Solana is likely to continue gaining market share in other major crypto sectors, such as DeFi and GameFi.
How High Can SOL/ETH Go?
SOL/ETH could go substantially higher if the current adoption trend favors Solana.
Solana’s market cap was last just over $78 billion, while Ethereum’s is around $310 billion.
If Solana is to catch up to Ethereum’s market cap, that would mark 4x gains for SOL/ETH, sending it to the mid-0.20s.
One factor that could help Ethereum fend off a challenge from Solana is increased institutional investment in the wake of the launch of spot Ethereum ETFs in 2024.
However, the Ethereum ETF launch has been a failure so far, with net outflows of nearly $500 million.
The demand for the #Ethereum ETF is so bad that Farside took down the Cumulative Flow chart. It’s been negative since inception. I bet the Ethereum Foundation made them take it down pic.twitter.com/WOE9xzOFfN
— MAC ₿ (@MacB10101) October 22, 2024
It remains to be seen whether institutional enthusiasm for Ethereum returns.
If not, the risks are strongly tilted towards SOL/ETH continuing to rise over the coming year.
Solana Alternative to Consider – FreeDum Fighters (DUM)
Solana is a strong candidate for the best crypto to buy now as network activity surges.
However, for those looking to bank even larger near-term gains, PolitiFi tokens might be worth considering.
The US election is right around the corner, meaning Political meme coins could soon surge.
One new gamified PolitiFi meme coin, FreeDum Fighters (DUM), is gaining a lot of hype right now.
Indeed, analysts at Cryptonews.com rank it as one of their best presales to buy right now.
Popular presale analyst Jacob Crypto Bury explains in the video below why DUM could be 10x.
Buy DUM Here
The post Solana Outpaces Ethereum as SOL/ETH Ratio Hits Record High – Can SOL Overtake Ethereum? appeared first on Cryptonews.
