- The SOL/ETH trading pair has surged 275% over the past year, with a recent weekly gain of 18%.
- Open interest in the Solana futures market increased significantly, reaching $3.28 billion, indicating bullish sentiment going forward.
Solana (SOL) price recently hit a new all-time high with respect to Ethereum (ETH) due to a surge in network activity that has garnered renewed interest. This positive upward trend of Solana makes believers in this project optimistic about Solana’s ability to rival ETH. Moreover, they expect SOL to even claim the market capitalization currently held by Ethereum.
Will Solana dethrone Ethereum as king of altcoins?
Continued efforts translated into significant activity on the Solana network have elevated SOL to a level where many enthusiasts consider it a strong competitor to Ethereum. In recent weeks, Solana has been among the top weekly gainers, showing resilience as well as stability in the Ethereum price.
Additionally, TradingView data pointed out that the SOL/ETH trading pair reached a new high of around 0.06995 ETH. Additionally, CNF reported that Solana founders have hinted at building an execution layer similar to Ethereum.
Moreover, the SOL/ETH pair has soared a whopping 275% in one year, with the one-week gain alone reaching 18%. However, SOL price currently appears to be stuck at $172.53, up 0.08%. Last week, Sol's price increased by 12.3%, ranking it as the best performing last week among the top 10 cryptocurrencies.
Ethereum, on the other hand, suffered a slight decline of 3.54% during the period. Needless to say, Ethereum enjoys a significant lead in overall market capitalization at around $304 billion compared to Solana's $81 billion. However, the recent bullish trend has sparked a debate on whether Solana has the potential to become a serious rival to Ethereum.
SOL Futures Market Activity Surges
In addition to rising prices, Solana's futures market has also seen a sharp rise recently. At the time of writing, the open interest position was $3.28 billion, according to data from Coinglass. For context, open interest is the net amount of unrealized futures that is useful for analyzing new investments in a particular market.
The rise in open interest has increased speculation surrounding Solana's price, suggesting that more traders are optimistic about a rally. The popular trader known as Jack expressed a surprising change of sentiment. “ETH may actually never hit all-time highs again,” Jack observed.
$ETH In reality, it may not be possible to update the all-time high again.
Sol actually does things I never thought were possible. Replace the entire network and remove all of its users.
— Jack (@depression2019) October 23, 2024
He added, “SOL is actually doing something that I didn't think was actually possible: replacing the entire network and taking away all the users.” His remarks reflect a continuing trend among traders and investors to rethink the Layer 1 blockchain landscape.
If Solana's futures open interest remains in line with the upward price trend, it may not be long before the SOL price crosses $185. This synchronization of rising Solana prices and increased capital allocation in futures contracts could further extend the bullish trend.
Moreover, if the pressure factors continue, Solana could break through yet another resistance level at $200 in the short term, CNF reported. This could pave the way for SOL's long-term goal of eventually surpassing Ethereum and becoming the market leader.
