The market cap of programmable blockchain Solana's Sol (SOL) token could surpass that of rival Ethereum's Ether (ETH) during the next bull cycle, a cryptocurrency observer said in December. Stated.
This week, markets showed how difficult this challenge is. Ethereum's price soared more than 19% on Monday, increasing its market capitalization by $70 billion to a total of $439 billion, according to data source TradingView. This is an increase equivalent to almost 90% of SOL's market capitalization in just one day.
The surge followed renewed expectations that a Spot Ethernet exchange-traded fund (ETF) would be approved in the U.S., with analysts saying the launch could bring the token closer to mainstream. , expects the gap between Ether and rivals such as SOL to widen in the coming months. Institutional adoption. So far, only Bitcoin has that privilege.
At the time of writing, Ethereum is the second largest digital asset in the world with a market capitalization of $453 billion, surpassed only by Bitcoin (BTC) at $1.38 trillion. Sol, on the other hand, ranks fifth with a market capitalization of $82 billion.
“The near-term outlook for ETH is incredibly bullish. “Let's not make it too complicated,” Ilan Solot, co-head of digital assets at Marex Solutions, said in an email. has dramatically shifted from short to underweight. ETH liquidity is locked into staking, and the macro backdrop is favorable.
Since its creation in 2015, Ethereum has become the world's leading smart contract blockchain, powering over 4,000 decentralized applications. It is home to some of the most important decentralized finance protocols such as Uniswap, AAVE, and tokenization initiatives such as BlackRock's BUIDL. Additionally, Ethereum has never experienced an outage like Solana.
Still, there have been instances, especially during bull markets, when traders have migrated to Solana to avoid Ethereum's network congestion and high transaction costs. For example, Solana's share of global trading volume on decentralized exchanges rose earlier this year thanks to the memecoin craze. This is fueling talk that SOL will eventually overtake ETH.
Considering the speculation and recent price movements of the ETH ETF, such talk seems premature.
