Solana (SOL) is the solid pick for rest of this bull market – not ethereum (ETH)

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As a crypto investor with experience in the market, I’ve closely followed the debate between Solana (SOL) and Ethereum (ETH), and I believe Solana is currently the better pick among the two layer 1 blockchains outside of Bitcoin.

Among the layer 1 blockchains excluding Bitcoin, which one between Solana (SOL) and Ethereum (ETH) is the superior choice? The value of SOL has surged by approximately 500% compared to ETH since mid-2023, suggesting a robust upward trend for SOL.

$SOL vs $ETH

The debate continues fiercely on social media platforms. Among all cryptocurrencies, Ethereum holds the second largest market value next to Bitcoin, boasting a market cap of $356 billion. In comparison, Solana occupies the fifth spot with a much smaller market capitalization of only $60 billion – roughly six times less than Ethereum.

It’s indisputable that Ethereum’s network security has outpaced Solana’s over the years, with Solana experiencing various outages. Moreover, Ethereum holds the advantage of being the first in the market. Consequently, it seems likely that Ethereum will ultimately emerge as the victor in this competition.

As a researcher studying the blockchain landscape, I’ve come across an intriguing observation. When it comes to one of the most significant performance indicators, Ethereum lags noticeably behind Solana. The disparity in terms of transactions processed is currently staggering – 28 million for Solana versus a mere million for Ethereum. That’s quite a substantial gap.

One can plainly observe that utilizing the Solana network significantly sets it apart in terms of transaction speed and cost compared to other networks, such as Ethereum. It’s not feasible to argue that layer 2 solutions will bridge this disparity for Ethereum. Instead, Solana’s advanced capabilities, including its upcoming validator client Firedancer scheduled for release later this year, only serve to widen the gap further.

$SOL up 500% against $ETH

The SOL/ETH graph demonstrates the significant price suppression of $SOL throughout the year 2022. However, a double bottom emerged in the initial half of 2023, marking the beginning of an upward trend. In mid-March, there was a remarkable surge of 730% for $SOL compared to $ETH. After revisiting the uptrend, $SOL is poised for another advance and might reach new heights against $ETH within the upcoming months.

SOL/USDT looks bullish

On the weekly chart of SOL/USD, $SOL appears to have regained its footing above the support level at $137, bouncing back from a dip to $118 just the day prior. The sizeable red candle representing this decline suggests a potential trend reversal for $SOL, and we’ll need to observe the weekly closing price on Sunday to confirm this shift in momentum.

From my perspective as an analyst, I firmly believe that Solana ($SOL) is the superior choice over Ethereum ($ETH) for the remainder of this bull market. Although the approval of the Ethereum Spot ETF by the SEC could potentially lead to a significant price increase in $ETH, a comprehensive evaluation from both fundamental and technical standpoints suggests that Solana holds a distinct advantage.

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2024-05-03 14:06