Solana ‘beats’ Bitcoin, Ethereum – How, what, why?


Solana ‘beats’ Bitcoin, Ethereum – How, what, why?


  • SOL has remained dominant this year.
  • It has, however, declined in the past few days, now trading below $200.

Solana’s[SOL meteoric rise from its cycle low in November 2022 continues to dominate headlines. It has attracted unprecedented liquidity and outperformed Ethereum[ETH] and Bitcoin[BTC] in key metrics, positioning itself as a top contender for the year.

A closer look at capital inflows, realized cap, and price performance reveals the extent of SOL’s growing dominance.

Solana outperforms ETH and BTC

Analysis of the Solana price chart, per data from Glassnode, showed that its performance has been remarkable. The analysis showed that since its low of $9.64, SOL has surged by 2,143%, significantly outperforming Ethereum and Bitcoin on 344 of 727 trading days since November 2022. 

Solana comparison with ETH and BTC

Source: Glassnode

The Price Performance chart shows SOL’s sustained upward trajectory, driven by strong investor confidence and increased network utility.

This consistent outperformance also demonstrates SOL’s ability to attract retail and institutional capital. Despite minor corrections, its trend indicates that further price gains are likely, especially as the network has continued to see new developments.

MVRV hints at further growth

The MVRV Extreme Deviation Pricing Bands chart analysis highlights Solana’s current market positioning. Historically, breakouts above the +1 standard deviation band have coincided with macro market tops, triggering significant profit-taking and supply distribution. 

SOL MVRVSOL MVRV

Source: Glassnode

As of this writing, Solana is consolidating between the mean and +0.5 standard deviation bands, signaling a relatively heated market but with considerable room to run.

This suggests that while investor profitability is increasing, it has not yet reached extremes that typically lead to sharp corrections. This balance points to sustained growth potential in the medium term as new capital continues to flow in.

Solana surpasses Ethereum in realized cap

Solana’s realized cap analysis, relative to Ethereum and Bitcoin, underscores its strong liquidity growth.

Since December 2022, Solana has consistently recorded higher realized cap gains, showcasing its ability to attract new capital even during market downturns. 

SOL market cap comparisonSOL market cap comparison

Source: Glassnode

The analysis reveals that Solana’s net capital inflows have matched and exceeded Ethereum’s for the first time. This trend, driven by heightened investor interest and network activity, shows SOL’s growing influence in the crypto market. The continued capital injection into Solana highlights its position as a preferred investment choice, even among traditional Ethereum holders.

SOL faces weekly decline amid broader consolidation

Despite Solana’s stellar long-term performance, the coin saw a notable decline this week. SOL started the week trading near $225, but has since dropped below the critical $200 level, indicating a short-term correction.

The Choppiness Index (CHOP) reading of 46.68 highlights a period of consolidation, reflecting market indecision.

The 50-day Moving Average at $220.06 now serves as resistance, while support appears near the $180-$190 zone, where significant buyer interest could emerge. Trading volume has increased during this dip, suggesting heightened market activity as investors consider their next move.

Solana price trendSolana price trend

Source: TradingView

While this decline may concern short-term traders, it aligns with profit-taking trends following Solana’s extended rally. The MVRV Extreme Deviation Pricing Bands indicate SOL remains within growth-supportive levels, avoiding the overheated territory seen in previous peaks. ‘

This retracement could provide a healthier base for further upward momentum as Solana’s fundamentals and network activity remain strong.


– Read Solana (SOL) Price Prediction 2024-25


While profit-taking pressures may emerge, its ability to attract significant liquidity and maintain upward momentum suggests room for growth. SOL’s prospects become stronger as investors increasingly look beyond Bitcoin and Ethereum.

Next: Bitcoin vs Dollar: 3 reasons why 2025 could be BTC’s breakout year



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