TL; DR
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There have been no major shifts in Solana’s fundamentals in recent weeks, or crazy announcements that would undermine the story, yet SOL continues to climb.
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Solana had a lot more ground to recover than Ethereum. Even now, after SOL exploded, it is still down 68% from its previous highs, while ETH is only down 53%.
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If Ethereum were to rise 15%, it would add the equivalent of Solana’s entire market cap to its own.
Full story
What the hell is going on with Solana?
It’s just… it’s just holds climb up.
But there haven’t been any major shifts in fundamentals in recent weeks, or crazy announcements that would undermine the narrative…
So what gives?
(And why isn’t Ethereum moving next to it?)
When we ask these kinds of questions, we turn to podcasts and articles, where people much smarter than us give their two cents.
Here are three reasons that made us think ‘oh yeah, that makes sense’:
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Solana is up 10x from its bear market low (from ~$8 in January to ~$80 today), while Ethereum has only gained 2x. How does that work?
Well, Solana has absolutely TANKED (lost 96.8% of its value, going from $250 to $8) thanks to its association with FTX. While Ethereum fell only 77.65% in the bear market, from ~$4.7k to ~$1.05k.
Point is: Solana had a lot more ground to recover. Even now, after SOL exploded, it is still down 68% from its previous highs, while ETH is only down 53%.
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Ethereum’s total market cap is MUCH higher than Solana’s ($257 billion vs. $34 billion), meaning less investment is needed to push SOL’s price up.
For context: if Ethereum were to rise 15%, it would add the equivalent of Solana’s entire market cap to its own.
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To that point… there’s more money to be made in Solana right now.
If ETH gains $34 billion in total market value, you will earn 15% on your investment.
If SOL gains $34 billion in total market value, you literally double your money.
So while Solana is still seen as the riskier bet, the chance of a bigger payout is currently attracting a larger chunk of investor money.
Very cool!