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Will Ethereum catch up on Solana's performance?
In an interview with BeInCrypto, Slater Heil, CEO of Composable Corp and head of the Blueberry Protocol, discussed the reasons for the worse performance of Ethereum compared to Solana. One reason for the higher increase in value of Solana in 2023 is the stronger price drop last year. More specifically, SOL has fallen by almost 97 percent since the all-time high, while ETH has fallen by 77 percent.
If you look at the Fibonacci levels, SOL and ETH have developed in a similar way. Both are close to their 0.382 Fibonacci resistance level.
In the crypto market, Heil believes that the price tells the story. Therefore, SOL's recent above-average performance has led to the assumption that Solana has overtaken Ethereum.
The strong development of Ethereum's Layer 2 networks such as Arbitrum (ARB) and Optimism (OP) is also interesting. This can be attributed to the fact that investors and speculators are always looking for something new.
The growth of Lido (LDO) as a staking protocol also shows clear progress. Its total value (TVL) is at a historical high of USD 21 billion. In contrast, Ethereum's TVL of USD 85 billion is far below its all-time high of USD 192 billion.
Heil also believes that Ethereum is the next candidate for a spot ETF and emphasises the potential of the currency. The mating ETH/BTC showed strong signs of soil formation on the day of the wrong ETF admission tweet.
Regarding Ethereum, Heil said to Solana:
The prevailing narrative about Ethereum rightly emphasises the high transaction fees and a user experience that seems to be tailored to large investors rather than the daily user. However, the reality is that ETH consciously puts long-term security and scalability above the immediate user experience. This strategy fits with the protocols that investors want to attract, who attach more importance to security than to fast and cost-effective transactions."
Source: Crypto-News
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