- Solana’s rapid appreciation against Ethereum reflects a significant shift in price action.
- Now, ETH’s long-term prospects must be reassessed to regain its former dominance.
While market volatility is inherent in the crypto world, recent analysis from AMBCrypto suggests Solana price is rising [SOL] may not be experiencing a fleeting rise, but rather the start of a larger trend that could shape future market cycles.
Simply put, this emerging pattern points to a deeper shift. Solana’s upward momentum versus Ethereum [ETH] could become a more persistent feature, rather than a short-term anomaly, threatening Ethereum’s long-standing dominance in the blockchain ecosystem.
A recurring pattern
In August, the Solana/Ethereum ratio (SOL/ETH) reached an all-time high of 0.06179, indicating a significant increase in the value of Solana against Ethereum. This achievement came amid a tumultuous $500 billion sell-off in the markets.
Despite these challenges, SOL recovered impressively, rising 48% from a low of $110 to $163 in just three days. Meanwhile, ETH saw a more modest recovery of 15%, rising from $2,157 to $2,463.
Source: TradingView
Currently, the SOL/ETH pairing has risen to a new ATH of 0.06987, coinciding with an overheated market as Bitcoin peaked at $70,000.
However, unlike previous cycles, ETH shows no signs of recovery. Instead, it has recorded higher daily lows accompanied by long red candlesticks, falling from $2.7K to $2.4K in less than five trading days.
The SOL, on the other hand, held steady and broke the key psychological barrier at $160 to trade at $174 at the time of writing, supported by a bullish MACD crossover.
This recurring pattern during high volatility, especially when BTC encounters resistance, reveals a notable capital shift towards SOL over ETH.
If this trend continues – as seems likely – SOL’s rising value could threaten ETH’s dominance, making it the preferred high-cap asset for those looking to limit risk when Bitcoin peaks.
Factors driving Solana up
Previously, critics claimed that Solana’s low fees made the chain economically unsustainable. Fast forward less than 12 months, and Solana has not only turned around Ethereum in terms of transaction fees, but also in terms of miner extractable value (MEV).
This shift illustrates that Solana’s price action is not just affected by Bitcoin’s fluctuations; rather, it is powered by the robust internal design.
Source: Blokwerken
Furthermore, Solana has received significant attention from the memecoin community, with half of the top eight memecoins per market cap, now based on the Solana network.
One highlight, Goatseus Maximum [GOAT]an AI-powered memecoin, has experienced a weekly increase of almost 100%, prompting wallets to hold SOL to capitalize on the memecoin craze.
This is supported by a recent one after which revealed that a significant supply of SOL had been moved into a new wallet, with a total of over 150,000 SOL acquired in the last three days, worth approximately $26 million.
ETH fundamentals are under pressure
The basics that once positioned ETH as the leading altcoin are now under pressure, as the number of wallets holding more than 10,000 ETH has fallen to a seven-year low.
Source: Glassnode
Certainly, ETH’s long-term prospects require reevaluation. With investor confidence waning, Ethereum must overcome these challenges to regain its position.
Read Ethereum’s [ETH] Price forecast 2024–2025
If not, issues like scalability, high fees, and competition from emerging platforms like Solana could invert the altcoin hierarchy, hampering ETH’s ability to benefit from capital shifts in the market.
Currently, Ethereum is valued at $2,464, reflecting a decline of 6% during the week, while its market cap fell by 4%.
Credit : ambcrypto.com
