- Solana has emerged as a strong competitor to Ethereum, replicating its early growth charts.
- However, there are still gaps to address.
As a seasoned crypto investor with years of experience under my belt, I’ve witnessed the rise and fall of numerous digital assets. Solana [SOL] has certainly caught my attention as it mirrors Ethereum’s early growth charts. While it’s exciting to see SOL gaining ground, I believe there are still gaps to address before we can talk about a complete takeover.
As a researcher, I’ve noticed an impressive surge of approximately 4% in the value of Solana (SOL) within the past 24 hours. Currently, it is trading at around $138, approaching a previously established resistance level.
It’s worth noting that this pump (price surge) has sparked renewed curiosity about its competition with Ethereum. Despite Ethereum holding the top spot, Solana is steadily growing in popularity.
Hence, can SOL’s strides shift stakeholders’ focus and prompt it to test its original ATH?
SOL is mirroring ETH’s early growth
Compared to Ethereum’s 350,000 daily active addresses, Solana boasted a staggering 11,228% more with its 39.3 million, indicating a surge in user engagement and popularity for Solana (SOL).
Yet, it’s worth noting that Ethereum’s Total Value Locked (TVL) stands at a staggering $44.5 billion, towering over Solana’s $4.6 billion. This difference underscores Ethereum’s continued dominance in the Decentralized Finance (DeFi) sector.
Here’s a simpler, more conversational rephrasing: This data makes it clear that Ethereum trails slightly behind Bitcoin in terms of market value, yet at the same time, highlights the remarkable expansion Solana has experienced, even though it debuted five years after its rival.
As a result, AMBCrypto considered if Solana could be experiencing similar rapid growth to Ethereum’s earlier spurt, considering the elapsed time.
Source : Artemis Terminal
It’s noteworthy that while Ethereum used to dominate with a DEX volume of $10 billion, Solana has made substantial progress and narrowed the gap considerably. In fact, as recent as last December, Solana outperformed Ethereum, recording a DEX volume of $2.9 billion compared to Ethereum’s $1.9 billion.
To put it simply, just like Ethereum’s Decentralized Exchanges (DEX) saw significant development in their initial three years, SOL is following a similar path. If this pattern continues, the activity on the Solana network may eventually surpass that of Ethereum.
However, DEX volume alone does not validate this hypothesis – what is next?
Solana exploits Ethereum’s shortcomings
Often seen as a competitor to Ethereum, Solana was designed with the intention of leveraging Ethereum’s weaknesses, particularly its high transaction fees (gas fees).
Consequently, the SOL platform has been dominating in daily transactions ever since its debut, reaching an impressive maximum of 37 million daily transactions, significantly outperforming Ethereum’s 1.1 million.
Source : Artemis Terminal
Combined, the increased DEX volume and rise in daily transactions suggest that Solana developers are making significant strides towards achieving their objective.
Surprisingly, despite the strong fundamentals, SOL is still 4.6x away from ETH in market cap.
Much ground still to cover
Although Solana boasts advantages over Ethereum, it faces a considerable journey before surpassing Ethereum’s market capitalization.
Initially, there’s been a significant decrease in development activities, which might suggest a feeling of contentment within the network. As Ethereum moves towards its 2.0 upgrade, this could potentially become a matter of worry for Solana’s supporters.
Source : Santiment
In other words, it seems that futures traders could be the ones to give up first, given the downward trend in Open Interest (OI), which has dropped significantly from $2.3 billion to $1.7 billion since Solana last reached $200.
Read Solana’s [SOL] Price Prediction 2024–2025
To put it simply, although Solana currently outperforms Ethereum in many aspects since its debut, it needs to continue developing its platform extensively if it aspires to fully overtake the latter.
In other words, as Ethereum undergoes its upcoming update, bridging the current price difference may grow more challenging; reaching $200 could merely be an initial milestone.
Read More
- DYM PREDICTION. DYM cryptocurrency
- CYBER PREDICTION. CYBER cryptocurrency
- ZK PREDICTION. ZK cryptocurrency
- JASMY PREDICTION. JASMY cryptocurrency
- POPCAT PREDICTION. POPCAT cryptocurrency
- Top gainers and losers
- SKEY PREDICTION. SKEY cryptocurrency
- ETH CAD PREDICTION. ETH cryptocurrency
- TURBO PREDICTION. TURBO cryptocurrency
- BNB PREDICTION. BNB cryptocurrency
2024-09-19 17:12