Solana Outpaces Ethereum as Bitcoin Rebounds - Here's Why
Solana fanboys are rejoicing as SOL continues to outshine the likes of Ethereum and Bitcoin, despite the latter experiencing a strong rebound.
Up 12% in a week, SOL reached an all-time high against Ethereum of over 0.07 ETH. Meanwhile, Bitcoin edged over the $68K mark overnight but has since retreated slightly.
In any case, both Ethereum and Bitcoin are in the red over the week while Solana experienced double-digit growth.
BRN analyst Valentin Fournier explained that Solana's surge stems from a "combination of memecoin frenzy and increased use of the Solana blockchain," which has driven open interest in SOL up by $500M over the past four days.
This influx of capital, following a day of outflows, signals renewed confidence in the medium-term outlook for the crypto market, particularly for Bitcoin. Meanwhile, $SOL is outperforming $ETH, reaching a record high of .069 ETH.
— BRN (@thebrn_co) October 24, 2024
Just this week, Solana memecoin $GOAT soared more than 270% after a self-proclaimed "chaotic" AI called Truth Terminal began ranting about "Goatseus Maximus."
Recent price movements for $GOAT have been nothing short of dramatic. Following its meteoric rise, the token has experienced significant volatility, driven by the ongoing fascination with AI personalities and the unpredictable nature of memecoins.
According to CoinGecko, Solana memecoins have a market cap of over $11.5 billion. AI-created memcoins alone have a market cap of over $2 billion, which has seen a 24% over the last day. 77.8% of Solana-based trading volume on decentralized exchanges is coming from memecoin trading.
Furthermore, Solana's Real Economic Value, which combines all of Solana's tip, priority, and base fees, have reached all-time highs. Blockworks’ data analytics manager, Dan Smith, highlighted on X how Solana generated $8.7 million in economic value, increasing from just under $8 million the day before.
ATH
— Dan Smith (@smyyguy) October 24, 2024
Again
$8.7m https://t.co/xQjjtLDF8b pic.twitter.com/ewdwAqRxTB
Active wallet addresses on Solana are at an all-time high too, edging closer to $6 million from around $1 million as recently as August.
Now priced at just over $170, Solana bulls are questioning whether SOL can reach $200, or more importantly if it can finally flip Ethereum.
However, BRN's Fournier reminds us that it might not be fair to compare the two. "Although Solana recently surpassed Ethereum in terms of revenue, it's important to note that the two blockchains serve different purposes and are not direct competitors," he said.