As ethereum (ETH) struggles to keep pace with bitcoin (BTC), Solana (SOL), its major competitor as a layer 1, is moving extremely positively against both.
Across social media, the persistent theme is that it's got to be ethereum’s time. There is talk that $ETH will eventually flip $BTC in market cap. The decreasing deflation is another topic. Upgrades are coming thick and fast. Yada yada yada.
However, when it comes down to price action, $ETH is definitely not king. The $ETH price is supposed to start moving up against its $BTC pair, but time ticks by, and it just doesn’t seem to get going. With so much bullish action in the ETFs for $BTC, and lots of question marks over whether the SEC will grant a Spot Ethereum ETF, the number two crypto currency is in danger of falling further behind.
Huge cup and handle for $SOL against $ETH
Source: Coingecko/Trading View
However, it’s the SOL/ETH trading pair that really tells a story. A cup and handle chart pattern on the monthly augurs a huge catch up in market cap for $SOL over $ETH. A measured move for the pattern suggests an almost double for the $SOL price over its $ETH pair.
Another cup and handle?
Source: Coingecko/Trading View
Even zooming in to the medium term daily time frame, the handle from the monthly time frame also contains another cup and handle within it. This particular pattern shows a measured move from 0.05 to 0.078 priced in $ETH.
$SOL dominates on most metrics
It’s not just price either where $SOL is dominating. On most metrics, such as number of daily transactions, speed, fees, etc., $SOL wins by a country mile.
One could point out that at the end of the day ethereum is far more secure than solana. That said, ethereum is not going to cut it unless it ramps up spectacularly on all the other metrics. At the same time, it must also be highlighted that solana still needs to prove itself as 100% stable.
The competition between these two can provide one of the major stories of this crypto bull market.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
