Market commentators have been speculating that Solana (SOL) might outperform Ethereum (ETH) on the price charts, a trend observed between late 2023 and early 2024. Renowned trader and chart analyst Peter Brandt is the latest expert to share this view, predicting that SOL could outperform ETH by 100% in the coming months.
Brandt’s projection is based on the SOLETH ratio, which recently retested its all-time high for the third time. He stated, “In the battle between $SOL and $ETH, it was inevitable there would be a clear winner…$SOL should gain 100% on $ETH in the months ahead.”
Understanding the SOLETH Ratio
For those unfamiliar, the SOLETH ratio tracks SOL’s performance relative to ETH. At the time of writing, the ratio stood at 0.059, meaning SOL was worth 0.059 ETH. A rising ratio indicates that SOL is outperforming ETH, while a decline suggests the opposite.
Source: X/Peter Brandt
The chart analysis shows that the SOLETH price action has formed a cup-and-handle pattern, a typical bullish formation. Brandt marked the immediate breakout target at 0.11, suggesting a significant upside for SOL holders if the pattern plays out.
Recent Market Movements
In recent trading days, SOL has shown strong performance, climbing by 12% and trading above $150. In contrast, ETH saw a 2.7% decline, despite trading above $2,500. This resilience in SOL’s price, despite recent fear, uncertainty, and doubt (FUD), has led some to label Solana as a “gambling chain” due to its association with the memecoin frenzy.
Source: SOL vs ETH price performance
However, Mert Mumtaz of Helius Labs argues that gambling is a broader crypto issue and not specific to Solana. He further added, “SOL has outperformed ETH because people care more about usability than intellectual circle jerking.”
Comparative Performance
Solana has surpassed Ethereum in several areas, including daily active addresses and occasionally in decentralized exchange (DEX) volumes and revenues. However, Ethereum maintains a significant lead in total value locked (TVL), with $48 billion compared to Solana’s $4.9 billion, indicating higher investor confidence in Ethereum.
Source: Artemis
In conclusion, while Solana shows promise and is gaining ground, Ethereum’s dominance remains evident in certain key metrics. The coming months will reveal whether Brandt’s bullish prediction for SOL over ETH will materialize.
