Is Solana Going To Dethrone Ethereum?
Solana is grabbing attention in the crypto world, especially after its strong performance against rivals Bitcoin. The SOL/BTC ratio recently broke out of a long-term consolidation phase, signaling a possible shift in market sentiment. On top of that, Solana’s blockchain activity is breaking records. Could this be the beginning of something big for Solana? Let’s take a closer look.
SOL/BTC ratio breaks out 8 months later
The SOL/BTC trading pair has been in a holding pattern for several months. However, the stock gained more than 1% last week, breaking out of a triangle consolidation pattern. For traders, this is a big deal. This suggests bulls are stepping in and could push Solana higher.
The technical aspects also support this statement. The MACD histogram recently flipped above zero, which is a classic sign of growing momentum. It’s like the market is saying, “We’re ready for action.” The question now is whether SOL can maintain this momentum.
DEX trading volume is soaring
Beyond the charts, SOL is making waves on the chain. In the week ending November 17, trading volume on the Solana decentralized exchange (DEX) reached $41.6 billion. That’s more than Ethereum, Base, and Binance Smart Chain combined! For context, Ethereum only managed $14.3 billion during that time.
Why does this happen? Retail traders seem to be flocking to Solana, especially for memecoin trading. This surge is more than just hype. This shows that SOL is ready to handle huge volumes of traffic, giving it an edge over its competitors. Even its DEX fees have a story. Raydium, one of Solana’s top DEXs, generated $72.83 million in fees last week, surpassing Ethereum’s $67 million.
What’s next for Solana?
Solana is clearly stepping up, but can it replace Ethereum? This is a difficult decision. Ethereum has a huge lead in developer support and ecosystem scale. But SOL is faster, cheaper, and now has proven it can meet retail demand. If it maintains this pace, it will continue to put pressure on Ethereum in ways that may surprise everyone.
Solana isn’t just following a trend, it might be starting a new one. Only time will tell if this is enough to truly challenge the big players.
