Solana Is Outpacing Ethereum This Year: Here’s Why
Solana (SOL) has gained momentum this year on the back of institutional inflows into the cryptocurrency market. The rise of the asset has led to bulls projecting more growth for the asset although short traders see an upcoming correction.
On-chain data shows that Solana is up 64.71% this year, a fair figure ahead of many assets as funds flow into its ecosystem. The community dubbed ETH killer has outperformed several assets this year and has moved ahead of the wider market during multiple breakouts this year.
Solana YTD Growth Trumps Ethereum
Solana is up 30.5% in the last 30 days although maintaining parts of gains gotten in previous months. Recently, the fall in the crypto market and declined investor sentiment have wiped out gains recorded in Q4 2023. Solana is down 7% today and trades 75% lower this week at $172.1.
Despite the loss of momentum, SOL’s daily volume is up with $5.2 billion, a 45% increase today. On the other hand, Ethereum trades at $3,270 maintaining its position as the largest altcoin by volume and market capitalization. While indices for Ethereum look higher than Solana, SOL has been confined to outpace the asset from the previous year.
Ethereum is up 43.4% year to date amid bullish sentiment in the market and anticipation for a spot Ethereum ETF in the United States. The altcoin giant is behind Solana in terms of yearly growth due to the latter’s booming ecosystem and the leanings of traditional investors.
Ethereum is down 3.6% in the last 24 hours and 9.06% this week. Although analysts say that Ethereum’s potential lies in its staking feature and ETF, it trails the asset for now.
Why Is SOL Above ETH?
Simply put, the reason for Solana’s run is due to institutional inflows and a surging memecoin ecosystem. Last year, the asset surged over 900% in heightened flows to products and was described as an institutional investor favorite while its rival ETH recorded outflows for several weeks.
Solana meme coins remain bullish for the asset, with investors pouring assets as the frenzy continues. The market capitalization of Solana meme coins stands at $7.1 billion.
Also Read: How Is The Crypto Market Doing Today?
- Coinbase Joins Ripple and Circle In Applying For National Banking License
- USDT Issuer Tether Eyes $200M Raise To Launch Tokenized Gold Treasury Company
- REX-Osprey Files For ADA, HYPE, XLM, SUI ETFs as Crypto ETF Frenzy Heats Up
- ChangeNOW’s Quiet Power Play in Helping Crypto Businesses
- Standard Chartered Sees Bitcoin Soaring to $200,000 by Year-End on ETF Boom
- BNB Coin Price Hits ATH as Derivatives Activity Soars—Is $1,520 the Next Stop?
- Aster Price Eyes $3 After Channel Breakout as Open Interest Surges to $1.37B
- Will XRP Price Hit $5 if the SEC Approves ETFs This Month?
- Bitcoin Price Hits $120K Ahead of Q4 — Can Citigroup’s Forecast Hold Up?
- Pi Network Price at Risk of Another Crash as Mysterious Whale Stops Buying
- Solana Price Eyes $360 After Bullish Retest As VisionSys AI Deploys $2B Treasury Strategy
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
