Solana: Can It Be The True Ethereum Killer Surpassing ETH?

• 1 Solana crypto highlighted significant buying interest and surged over 10% in the intraday session.
• 2 Key metrics suggest SOL crypto might reflect a storm in the next sessions.

The Solana (SOL) crypto gained investor interest and was returned to the bullish track. Recent developments have given a kick to the Solana (SOL) crypto.

Notably, investors are focusing more on the Solana crypto, compared to Ethereum (ETH) these days, as it offers low gas fees, and high transaction speed. Apart from that, Solana crypto is still cheap and shows good fundamentals.

This month, usage on the Solana network has increased, SOL also went up. Conversely, Ethereum (ETH) price showed a decline, as users prefer SOL crypto to Ethereum.

Solana (SOL) ranked 5th in terms of market capitalization, and was traded at $154.02 with an impressive 9.90% spike in the last 24 hrs. 

Solana (SOL) Vs Ethereum (ETH): Key Metrics Outlook

There have been a lot of comparisons between ETH and SOL, mostly pivoted towards short-term price gains or rallies, and developments, however, a closer look at on-chain data suggests where the ecosystem is headed.

1. Daily Transactions

Here, SOL takes a lead over ETH per the analysis of daily transactions. The number of daily transactions of the SOL crypto witnessed a whooping surge, noted at around 30 million, whereas Ethereum daily transaction activity looks flat, noted at around 1.2 Million.

Source: Artemis

2. Fees

Another reason for preferring the Solana network, is the lower fees compared to ETH. Investors are showing their interest more on the Solana Network, which led to a price pump.

Source: Artemis

At press time, Ethereum fees had hit the $2.4 Million, while Solana (SOL) hovered at around $1.3 Million. ETH has a strong dominance in this space, but due to the lower fees, Solana Network popularity has increased.

3. Development Activity Outlook

Since the beginning of this month, a significant surge in development activity on the Solana Network was noted. Conversely, the reason behind the price drop of Ethereum (ETH) is the decline in the development activity.

Source: Santiment

4. DEX Trading Volumes

The DEX (Decentralized Exchange) trading volume highlights that Solana Network rose from the bottom, while ETH noted a consistent drop over the past few weeks.

Source: Artemis

At press time, the DEX trading volume of Solana Network and Ethereum (ETH) noted a convergence and has an equal volume around $1.3 Billion.

Solana Set For Surge: Crypto Analyst Says

This week, the Solana (SOL) price rebounded from its 100 day EMA support mark and retested the breakout region of $120. Furthermore, the Solana price has escaped the round mark of $150 and molding eyes to reach the $200 mark in the next sessions.

The Relative Strength Index (RSI) curve retained the midline and noted a positive crossover, directing the bullish momentum on the charts.

Source: TradingView

As per the tweet by the @cryptojack on the X platform, he said that the SOL crypto has made a rounding bottom formation and is an ideal candidate to break its ATH (All-time-high) mark.

Solana formed a rounding bottom pattern over many weeks and is primed for an explosion any moment now.

I entered a Long position on $SOL and expect it to break ATHs this year! #Solana pic.twitter.com/ApUazaXXz5

— CryptoJack (@cryptojack) May 8, 2024

Source: X

The derivative data highlights fresh long buildup activity and the investors have persisted in accumulation. The open interest spiked over 9.88% to $1.94 Billion in the last 24 hrs.

Futures Open Interest

Source: coinglass

The immediate support levels for the Solana (SOL) is $140 and $132, whereas the key upside hurdle is around $160, followed by $176.

It Could Be A While Before A SOL Takeover…

The SOL crypto gained momentum and is in the limelight, while the sentiments for ETH are neutral. Ethereum has long been the dominant player between the two.

Disclaimer

The views and opinions stated by the author or any other person named in this article are for informational purposes only and do not constitute financial, investment, or other advice.