Solana (SOL) dominates Ethereum (ETH): Glassnode co-founder
According to Glassnode co-founder Jann Allemann, capital rotation in the cryptocurrency market has begun.
Allemann noted that Solana (SOL) is currently dominating Ethereum (ETH). His assessment was made after the former rose by about 10% over the latter since May 27.
The SOL / ETH pair has declined significantly following the approval of several spot Ethereum exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) earlier this month. On May 27, the price of Ethereum hit a high of $3,973 on the Bitstamp exchange. However, the excitement around the much-coveted SEC approval quickly dissipated and ETH lost 7% in a matter of days. The SEC has yet to approve the S-1 registration statements to launch these ETFs.
At the same time, bitcoin's market dominance has fallen more than 4% since May 6 after breaking the 56% mark.
Once a particular cryptocurrency rises, it tends to fall while traders lock in profits and bet on other assets. Cryptocurrency capital rotation can also occur internally, meaning that the same cryptocurrency is purchased at different prices.
Despite the recent weakness, Bitcoin has still kept pace with Ethereum since the beginning of the year. The two cryptocurrencies are up 77.71% and 79.38% respectively.
