Solana has been at the forefront of the cryptocurrency race for a long time. At one point, given the functionalities of the blockchain, it was also considered a “killer Ethereum”. After setting a new all-time high today, this is where Solana stands and how it compares to Ethereum when we consider the numbers.
Solana at $ 62!
That’s the new all-time high that SOL posted on today’s daily charts. In May, the currency pegged the ATH at $ 52, but failed to break it in the following months. However, in the first hours of trading on August 16, SOL touched $ 62. This is the result of the recent rally that raised the price of the coins by 164%. Just yesterday, it rallied 21%, its biggest one-day rally in more than 2 months.
Compared to ETH, the Solana rally may have triumphed, but it falls when it comes to on-chain stocks. Actual ETH volumes at $ 2.3 billion are higher than SOL’s $ 1.12 billion.
The capitalization of the circulating market, which is basically the price of the asset multiplied by the circulating supply, for Ethereum is also magnitudes larger than Solana, the first is at $ 386 billion while the second is at a mere $ 12.7 thousand millions. A big contributor to this is the high prices of ETH even though it has a much lower supply than SOL.
Additionally, Sharpe’s Ratio shows that, for the moment, Ethereum promises better and higher returns than Solana. SOL’s figures managed to get back to May highs of 3.6, but ETH sits at 7.6.
Lastly, when calculating the probability of any price swings in the future, we look at volatility, and right now Solana’s volatility is quite low at 1.11. Ethereum’s volatility is also low at 0.75, which means that a sudden price drop is not imminent for both currencies.
Do investors lean towards Solana?
At the moment, given Ethereum’s popularity and a stronger network presence, Solana cannot be said to be turning investors away. However, with the recent fork in London and the introduction of the rate-burning mechanism, some miners might turn away from ETH. Solana is already known for its ability to process more than 1000 transactions per second (TPS), which is exceptionally higher than ETH’s 14 TPS, but due to its different programming language, it has not yet gone mainstream.
The network is preferred by many developers though, as a Solana (Dex) blockchain-based decentralized exchange recently raised $ 70 million in a token sale this Wednesday.
This is a machine translation of our English version.
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