Why Buying Ethereum (ETH) Could Be A Better Choice Over Solana (SOL) At This Stage
Solana (SOL) has grabbed the attention away from Cardano (ADA) as one of the biggest competitors to Ethereum. Amid the staggering growth, the SOL cryptocurrency has emerged as the competitor to Ethereum (ETH) by grabbing a spot in the top five crypto list.
Solana (SOL) had a solid runup recently with the SOL price skyrocketing past $260. However, some of the fundamental factors show that buying Ethereum (ETH) at this point could be more rewarding to investors than buying Solana (SOL).
If we look at the last three months’ chart, the SOL price has closely followed that of ETH. But the former seems to have a much quicker runup.
However, if we look at the “revenue” i.e. the fees paid to protocol and miners/validators, Ethereum seems to beat Solana by a great margin. The cumulative revenue of Ethereum since that of inception is $8.8 billion while that of Solana is $16.4 million which is like 500 times different. However, it might not be fair to compare it considering that Ethereum is much older.
But if we also take a look at the weekly chart, Ethereum has $471 million in revenue while Solana has $1.6 million. Clearly, Ethereum is the winner by a huge margin.
Solana Seems Pricier on Marketcap/Revenue Multiples
Thus, on a multiples basis of market cap/revenue, SOL seems to be more expensive than Ethereum to buy at this stage. Solana (SOL) is currently trading at 1500x multiples while Ethereum (ETH) is trading around 25x multiples.
“The implies that SOL has significantly more rosy expectations embedded into the price, relative to where it currently is in terms of usage,” writes analyst Jefferey Zheng.
One area of concern is that Solana is quickly gaining traction with developer activity which has been on a decline for Ethereum. The high gas fee on Ethereum has served as a deterrent for new developers who are preferring Solana over Ethereum.
- Expert Predicts SOL ETF Approval This Week as Solana ETPs Break All-Time Record
- XRP On-Chain Data Flashes Buy Signal as Analysts Target $4
- U.S. To Start Funding Its Bitcoin Reserve Anytime, Says Senator Lummis as BTC Rally Extends
- Bitcoin Should Be At $148,000 To Match With Gold Rally, Says Peter Schiff
- Dogecoin Gets Major Upgrade With Cardinals Index Node Launch, Analyst Predicts 37x Rally
- Cardano Price Consolidates Below Key Resistance Ahead of ETF Verdict — Is a 50% Rally in Sight?
- Solana Price Eyes 56% Rebound Amid Solana Company’s Massive $530M SOL Acquisition
- Ethereum’s Price Bullish Cycle Resumes as Grayscale Launches Spot Staking ETPs – Is $7,331 Next?
- Pi Network Price Risky Pattern Points to Crash as 14M Coins Leave OKX
- Bitcoin Price Prediction as Exchange Reserves Hit 6-Year Low—Is $150K Within Reach?
- Dogecoin Price Rebounds 15% From Buy Zone as Whales Add 30M DOGE – Can Bulls Push Beyond $0.30?
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.
