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Major cryptocurrencies Solana (SOL) and Ethereum (ETH) stand out as two formidable contenders in the blockchain space, with each vying for dominance.
Recently, attention has turned to the SOL/ETH ratio, indicating a potential trend favoring Solana. As this ratio continues to climb, it suggests that SOL's price may maintain its outperformance against ETH.
According to the cofounder of Glassnode, who goes by the name "negentropic" on X, the SOL/ETH ratio has been on a tear as Solana has rallied strongly since late 2022.
A rising SOL/ETH ratio suggests that Solana's value is increasing relative to Ethereum; Negentropic provides a chart demonstrating this trend. He further predicts that the SOL/ETH pairing might peak at 0.76, or even higher.
As the SOL/ETH ratio rises, Negentropic believes Solana's price might continue to outperform Ethereum.
Solana (SOL), the fifth largest cryptocurrency by market cap, has increased in value in recent weeks, rallying along with the rest of the market and continuing the uptrend that drove its price above $120 in December before momentum slowed for a few months.
Solana prices rose above $200 in the last week for the first time since December 2021. Solana reached a high of $210 on March 18, four days after Bitcoin reached an all-time high of $73,835, and Ethereum exceeded the $4,000 price point.
Tomiwabold OlajideSolana, like these major coins, fell after reaching its milestone, hitting a low of $162 on March 20. However, the price has subsequently rebounded, up 9% in the last 24 hours to $192 as of this writing.
The value of Solana has grown in tandem with a surge in decentralized finance (DeFi) trading activity, as well as an increase in Solana-based meme coins riding the new wave of cryptocurrency mania.
Solscan reports that on March 24, 6,568 new tokens created using the SPL token standard appeared on Solana, while 1777 new NFTs were created.
Alex Dovbnya
Dan Burgin
Vladislav Sopov