Can SOL Hit $200 in 2024 and Overtake Ethereum?
As September closes with hopes of a rally in October, the cryptocurrency market is showing signs of recovery, breaking the usual bearish trend for the month. With Bitcoin climbing back above $66,000 and top altcoins, including Solana, breaking above the $155 key resistance level, excitement about the altcoin season is growing.
Looking at the current market conditions, Solana is expected to easily overtake Ethereum, especially since recent analysis by Altcoin Daily shows that Solana's network upgrades and scalability improvements will position it as a serious contender. But does this idea hold up under scrutiny?
Let's dive in!
Solana Rice vs Ethereum leader
Solana's price performance and market growth in 2023 has been impressive, leading some to speculate that it may eventually challenge Ethereum's dominance. According to Altcoin Daily analysts, Solana outperforms Ethereum in several key metrics such as decentralized exchange (DEX) trading volume and confirmation rewards. However, Ethereum still leads the DeFi and NFT sectors, with a stronger ecosystem and a larger developer community.
Metrics on the Chain: Competitive Competition
Multicoin Capital's Kyle Saney highlights that Solana's on-chain metrics, especially validator rewards, are increasingly competitive with Ethereum. At times, Solana surpassed Ethereum in terms of economic value created. However, Ethereum's layer 2 solutions maintain a broad dominance.
Although Solana has made strides, especially in Statcoin transactions, handling almost half of Ethereum's volume, Ethereum still leads overall. Analysts suggest that Solana's innovations such as token extensions and cryptocurrencies are attractive to institutional investors. In addition, Solana's upcoming Fire Dancer upgrade aims to significantly increase network speed and scalability by Jump Trading, increasing its growth potential.
VanEck Market Vector reports that Solana boasts approximately 1,300% more active users and processes 3,000% more transactions than Ethereum, indicating its growing adoption in the crypto space. However, Ethereum still dominates the market with 56% of Total Locked Value (TVL), while Solana only holds 6%. The competition is fierce, especially as ethereum ETFs are gaining traction, although they have yet to reach their full potential. In contrast, Solana ETFs theoretically remain at this level.
Can Solana Really Flip Ethereum?
While Solana is gaining ground, overturning Ethereum seems unlikely any time soon. Ethereum's massive ecosystem and network effects still provide a huge lead. On the chain, analyst Ali Martinez Solana predicts a 900% increase in the coming months. However, Ethereum may extend its current rally and soon surpass $3,500.
Solana is currently poised to test a significant resistance level, which could reach $181 if the bullish sentiment continues, with a chance to hit the yearly high of $209. If bearish trends hold, SOL may test the support level at $155 and drop to $127.
Where do you see SOL next?
