A crucial metric reveals that Solana (SOL) is asserting itself in the world of altcoins. Within the past 12 months, SOL has registered an astronomical growth rate as it takes on Ethereum (ETH), the second-largest cryptocurrency.
What’s driving Solana’s accelerated growth?
In a post on X, Kate Young-Ju, an altcoin data analyst, shared a significant chart that supports this trend. A careful observation of the SOL-ETH market capitalization ratio shows it has steadily climbed since about October 2023.
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Within the period under review, Solana has more than tripled its growth rate compared to Ethereum. Young-Ju’s chart suggests that Ethereum is seeing a decline in its market share compared to Solana.
$ETH is losing market cap to $SOL. pic.twitter.com/GVDjkr6xln
— Kate The Alt (@kate_young_ju) September 23, 2024
Experts have attributed this shift to several factors in the crypto space. Solana’s faster transaction speed and lower cost are appealing to users. Speed is also attractive to decentralized applications (dApps).
Solana’s growing ecosystem has also drawn more developers to the chain, thereby increasing its value.
Positive sentiment and Scaramucci’s predictions for Solana
According to data, Solana, the fifth largest blockchain, has a market capitalization of $67,963,346,302. Ethereum, which occupies the second position, led only by Bitcoin, has a market cap of $321,033,361,586. Despite the huge difference, SOL has gained considerably on ETH within the past year.
Meanwhile, recent activities in the Solana ecosystem hint at something big. Solana’s market volume leaped 98.87% to $6.75 billion, fueled by bullish sentiments among coin traders.
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Furthermore, the positive sentiment around Solana received a boost recently when Anthony Scaramucci, SkyBridge Capital founder, revealed being a Solana coin holder. Scaramucci is betting heavily on Solana, predicting massive tokenization soon. He also believes in the possibility of a Solana ETF. These positives have helped Solana reduce the SOL-ETH market capitalization ratio.
