Ethereum Attracted $58 Billion, 2X Solana Market Cap
According to a crypto enthusiast on X, Ethereum and Solana represent different classes in the cryptocurrency space. Despite Ethereum’s price remaining relatively stable in the last month of trading, it has managed to draw significantly more capital from the community compared to Solana, the fourth-generation blockchain.
On November 16, @litocoen, a self-described creator, highlighted that Ethereum’s recent surge above the $2,000 resistance level resulted in attracting $58 billion in the past 30 days. This amount is twice the total market cap of Solana, emphasizing Ethereum’s unique position as a distinct asset class. The creator predicts an inevitable path towards $10,000 for Ethereum.
Ethereum has experienced a 30% increase in spot rates over the last month, but the daily chart indicates a struggle to surpass the $2,000 level, failing to breach the July 2023 highs of $2,100. Despite an overall uptrend, ETH has faced challenges this week, disappointing optimistic traders who anticipated further gains following the surge on November 9.
Comparing Ethereum and Solana Performance
While Ethereum faces challenges, Solana has been on an upward trajectory, with a more than 200% increase from October lows. Although there has been a slight cool-off from this month’s high of around $67, SOL’s uptrend remains clear and defined. It has outperformed not only ETH and BTC but also other top 10 coins, including XRP and Cardano (ADA).
Blaming Liquidity for Ethereum’s Challenges
The disparity in performance could be attributed, in part, to the relatively low liquidity in Solana. Ethereum added $58 billion in the last month, double the total market cap of Solana, which stood at $26 billion as of November 16. Lower market cap coins like Solana tend to be less liquid and more volatile, characterized by relatively low trading volume.
Earlier, MakerDAO, a prominent decentralized autonomous organization (DAO) managing DAI, and Maker, one of the largest decentralized finance (DeFi) protocols, hinted at the possibility of deploying a new blockchain using Solana code. This potential move would mark a significant departure for MakerDAO, which has traditionally relied on Ethereum, and DAI has been exclusively available on the pioneer blockchain.
