Solana Surpasses Ethereum Completely in the Second Half of 2024

In the second half of this year, Solana has proven itself to be a competitive name against Ethereum, with capital flowing into its ecosystem doubling that of Ethereum.

Solana (SOL) is navigating a challenging phase as its price shows signs of stagnation, despite efforts to reclaim the $200 mark. Interestingly, while price movement has been subdued, Solana’s appeal to investors has outpaced Ethereum in recent months.

Specifically, Solana’s Hot Realized Cap has reached $9.5 billion, more than double Ethereum’s $4.1 billion. According to Glassnode, this marks the first time in history that new capital inflows into Solana have surpassed those of Ethereum—a significant milestone underscoring the growing allure of the Solana ecosystem. Notably, this surge in Solana’s Hot Realized Cap ahead of 2024 highlights a crucial turning point in the SOL/ETH dynamic.

However, the overall picture for Solana remains mixed. While Bitcoin and Ethereum have seen impressive realized capitalization growth rates of 10.87% and 5.43%, respectively, Solana’s growth stands at a modest 2.19%. This indicates that Solana is losing momentum faster than its two leading counterparts.

The gap between strong investor demand and slow realized capitalization growth reflects that Solana’s network activity has yet to meet market expectations. To regain its growth trajectory, Solana must improve its realized cap metrics and garner stronger support from the broader market.

Currently, Solana (SOL) is trading around $192, down 27% from its mid-November peak of $256.

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