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The Ethereum Blockchain token Ether (ETH) adds almost an entire Solana (SOL) to its market value
The market capitalization of programmable blockchain sol (SOL) The token could surpass that of rival Ethereum’s ether (ETH) during the next bull cycle, a crypto observer She said in December.
This week, the market demonstrated how herculean the task would be: The price of ether rose more than 19% on Monday, adding $70 billion to its market capitalization for a total of $439 billion, according to the data source TradingView. This is a gain equivalent to almost 90% of SOL’s market value in a single day.
The surge followed renewed hopes that a spot ether exchange-traded fund (ETF) will be approved in the United States Analysts say so the gap between Ether and its rivals like SOL will widen in the coming months as a potential spot ETF launch opens up the token to mainstream institutional adoption. So far only bitcoin has had this privilege.
At the time of this writing, Ether was the second largest digital asset in the world, boasting a market capitalization of $453 billion, surpassed only by that of Bitcoin. (BTC) $1.38 trillion. Sol, meanwhile, ranked fifth with a market value of $82 billion.
“The near-term outlook for ETH is incredibly bullish. Let’s not overcomplicate it,” Ilan Solot, co-head of digital assets at Marex Solutions, said in an email. “The ETF announcement is almost a black swan for (most) investors too, markets are dramatically short or underweight ETH, much of ETH liquidity is locked up in staking and the macro backdrop is favorable,”
Since its inception in 2015, Ethereum has been the world’s leading blockchain for smart contracts, powering over 4,000 decentralized applications. It hosts some of the most critical decentralized financial protocols such as Uniswap, AAVE, and tokenization initiatives such as BUIDL by BlackRock. Furthermore, Ethereum has never experienced a Interruption similar to that of Solana.
However, there have been instances, particularly during bull runs, where traders have switched to Solana to bypass Ethereum network congestion and higher transaction costs. For example, Solana’s share of global trading volume on decentralized exchanges increased earlier this year thanks to the meme coin frenzy. This spurred rumors that SOL would eventually surpass ETH.
If ETH ETF speculation and recent price action are anything to go by, such talks appear premature.