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Rotation from ETH to Solana fuels bearish sentiment

Rotation from ETH to Solana fuels bearish sentiment

GrafaGrafa2024/10/25 02:51
By:Liezl Gambe

Ethereum (CRYPTO:ETH) has faced renewed bearish sentiment as investors shift their focus towards Solana (CRYPTO:SOL)

Over the past week, Solana gained approximately 17%, while ETH remained relatively stagnant. 

Solana has surged by 600% against Ethereum since 2023, driven by the popularity of meme coins. 

This rotation has intensified discussions about Solana’s potential to challenge Ethereum’s market dominance, although a significant gap remains with Ethereum’s market cap at over $300 billion compared to Solana’s $82 billion, as per CoinGecko data. 

The ETH/BTC ratio reached its lowest level since April 2021, dropping to 0.037 on October 24, according to TradingView. 

Ether’s price fell around 9% from its recent two-month high of $2,760 on October 21, slipping below $2,500 on Thursday. 

Meanwhile, Bitcoin (CRYPTO:BTC) recovered most of its recent losses, climbing to $68,820 during late trading on October 24. 

In response to the shifting market dynamics, Ethereum developers and advocates have been defending the blockchain. 

On October 24, core developer Eric Connor dismissed criticism regarding Ethereum’s layer-2 solutions, fragmented liquidity, and development speed, emphasising that Ethereum remains committed to decentralisation and has substantial institutional adoption and developer engagement. 

Connor noted, “I’ve always said Ethereum is a multi-decade play but it’s still on the right path to being the true winner.” 

Traders and analysts have weighed in on the situation. 

Independent trader Bob Loukas described the shift as a “repricing of where the economic activity is,” suggesting that value is being redistributed within the crypto ecosystem. 

Ethereum educator Anthony Sassano echoed this sentiment, attributing the negative discourse to ETH’s underperformance, stating, “It just seems like these complaints only exist when ETH is trading weakly against other assets – price drives sentiment.” 

Despite the ongoing FUD (fear, uncertainty, and doubt), Solana developer advocate Mert Mumtaz reiterated his support for the Ethereum ecosystem in a recent post. 

The unfolding rivalry between Ethereum and Solana continues to shape market sentiment as both networks seek to expand their user base and use cases.

At the time of reporting, the Ethereum price was $2,516.35, and the Solana price was $176.02.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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