CandleFocus

Can Solana flip Ethereum? Find out what’s at stake for your crypto holdings

Author: Content Editor
Solana (SOL) has seen a significant rally against Ethereum (ETH) in 2024, with its native token emerging as a strong contender despite having a smaller market capitalization. On-chain metrics, DEX volume, and protocol revenue all favor Solana over Ethereum. Solana has collected nearly double the amount of protocol fees compared to Ethereum, indicating higher revenue. Additionally, Solana's DEX volume is nearly double that of Ethereum. These metrics demonstrate the growing utility and adoption of Solana compared to Ethereum. However, Ethereum still dominates in circulating stablecoin supply and total value of cryptocurrencies locked on the chain. Solana is making strides in the stablecoin space, which could help it overcome Ethereum's first-mover advantage. The rise of Solana has also contributed to gains in its ecosystem tokens, particularly meme coins. Meanwhile, Ethereum's Layer 2 and Layer 3 projects are struggling to gain traction. Technical indicators suggest further gains for Solana against Ethereum, with the potential to break past its all-time high and reach the psychologically important $300 mark. Traders should be aware of Solana's high correlation with Bitcoin and consider this before adding to their positions in both assets.

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