Solana (SOL) Eating Ethereum’s Big Share

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As a seasoned crypto investor with over a decade of experience in this dynamic and ever-evolving digital landscape, I find myself increasingly captivated by the meteoric rise of Solana (SOL). The last 12 months have been nothing short of spectacular for SOL, as it has managed to challenge Ethereum (ETH), the second-largest cryptocurrency.

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?

On platform X, Kate Young-Ju, a prominent altcoin data analyst, recently posted a noteworthy graph that aligns with this ongoing trend. Upon closer examination of the Solana (SOL)-Ethereum (ETH) market capitalization ratio, it has noticeably increased since approximately October 2023, indicating a gradual ascent over time.

During the given timeframe, Solana’s growth pace significantly outpaced Ethereum by over threefold. According to Young-Ju’s visual representation, it appears that Solana might be gaining ground on Ethereum, potentially leading to a decrease in Ethereum’s market share relative to Solana.

$ETH is losing market cap to $SOL. — Kate The Alt (@kate_young_ju) September 23, 2024

It’s been noted that several elements within the cryptocurrency industry are contributing to this change. Users find Solana’s quicker transaction rate and reduced costs more alluring, while speed is equally enticing for decentralized applications (dApps) as well.

As Solana’s extensive ecosystem continues to expand, it has attracted an influx of developers to the platform, subsequently boosting its worth.

Positive sentiment and Scaramucci’s predictions for Solana

Based on available data, Solana, ranking fifth among blockchains, boasts a market capitalization of approximately 67.96 billion dollars. Ethereum, currently second in line after Bitcoin, holds a market cap of around 321 billion dollars. Despite this significant disparity, Solana (SOL) has made considerable strides against Ethereum (ETH) over the past year.

Currently, the Solana network appears to be preparing for a significant event based on its recent activity surge. The trading volume of Solana coins increased by a massive 98.87%, reaching an impressive $6.75 billion. This growth can be attributed to optimistic feelings among traders in the crypto market.

In addition, Solana has gained more optimistic views as Anthony Scaramucci, founder of SkyBridge Capital, publicly disclosed his ownership of Solana coins. Scaramucci is putting a lot of faith in Solana, predicting a significant increase in tokenization and even speculating about the possibility of a Solana Exchange Traded Fund (ETF). This optimism has contributed to a decrease in the market capitalization ratio of SOL compared to Ethereum.

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2024-09-23 20:17