Solana Hits Record High Against Ethereum—Is Flippening 2.0 Here?

• The SOL/ETH trading pair has surged by 275% over the past year, with recent weekly gains of 18%.
• Solana’s futures market has seen a sharp increase in open interest, reaching $3.28 billion, indicating bullish sentiment ahead.

Solana (SOL) price has recently established a new all-time high in terms of Ethereum (ETH) due to a surge in network activity that has renewed interest. Due to this positive upward trend of Solana, believers in the project are optimistic about its capability to rival ETH. Moreover, they even expect SOL to claim the market cap currently held by Ethereum.

Solana To Oust Ethereum As King Of Altcoins?

The constant efforts that are translated into significant activity on the Solana network have propelled the SOL’s rise to a level where many enthusiasts consider it a strong competitor to Ethereum. In recent weeks, Solana has bagged a spot among the top weekly gainers, showing resilience at the same time when the Ethereum price has been stable.

Moreover, data from TradingView noted that the SOL/ETH trading pair reached a new high of about 0.06995 ETH. Additionally, the Solana founder has hinted at building an Ethereum-like execution layer, reported CNF. 

Moreover, the SOL/ETH pair has surged by a whopping 275% in a year while the 1-week gains alone stand at 18%. However, currently, the SOL price seems stagnant at $172.53, up 0.08%. In the last week, the price of sol has increased by 12.3% enabling it to be rated among the top performers in the last week among the top 10 cryptocurrencies.

On the other hand, Ethereum suffered an insignificant fall of 3.54% in the said time frame. It goes without saying that Ethereum enjoys a significant lead in the overall market cap with about $304 billion compared to Solana’s $81 billion. However, the recent bullish trend has sparked a debate about whether Solana could become a serious rival to Ethereum.

SOL Futures Market Activity Surge

Besides the price increase, Solana’s more recent futures market has also seen a sharp increase. At press time, open interest positions stood at $3.28 billion, according to Coinglass data. For context, open interest is the net amount of unrealized futures which helps in analyzing new investments in a particular market.

With the open interest rise, it suggests that there is rising speculation around Solana price and more traders are optimistic for a surge. A popular trader known as Jack expressed a surprising shift in sentiment. “ETH might actually never go to all-time highs again,” Jack observed.

$ETH might actually never go to all time highs again

Sol is really doing what I didn’t think was ever actually possible: replacing the network as a whole and taking all its users

— Jack (@depression2019) October 23, 2024

He added, “SOL is really doing what I didn’t think was ever actually possible: replacing the network as a whole and taking all its users.” His remark reflects the ongoing trend of traders and investors rethinking the situation of Layer 1 blockchains.

If Solana’s open interest in futures remains consistent with the upward price movement, it might not be long before the SOL price pushes above $185. This synchronization of the rising price of Solana with a rising allocation of funds in the futures contracts may further extend the bullish trend.

Moreover, if the pressure factors continue, Solana may in a short time breach yet another resistance level at $200, reported CNF. This could set the stage for SOL’s long-term target of becoming a market leader, surpassing Ethereum in due course.