In the ongoing battle for crypto dominance in Q4 2024, Solana and Ethereum are fierce competitors. Ethereum has seen over $850 million in institutional capital inflow to ETFs, while Solana attracted over $300 million in cross-chain inflows last week.
Solana has outperformed Ethereum in several key aspects this year. In app fees, Solana amassed $322.8 million this month compared to Ethereum’s $311.1 million. In app revenue, Solana dominated with $140.95 million in December against Ethereum’s $93.56 million, having also led in October and November. Regarding DEX volume, Solana leads with $67.43 billion, while Ethereum lags at $52.37 billion. Solana’s DEXes have witnessed a flurry of token launches and trades in Q4, fueling its DEX volume growth.
The potential approval of a Solana ETF could enhance its legitimacy and adoption. Ethereum’s ETF adoption has spurred significant capital inflows. Solana gained over $300 million from different blockchains last week, with $200 million from Ethereum. Solana-based DEXes are narrowing the gap with centralized exchanges, thanks to advancements and scalability.
Anmol Singh of Zeta Markets believes Solana is on track to become a dominant force in DeFi and on-chain applications by 2025, citing its low fees, high speed, and growing ecosystem.
Ethereum is trading near its 2024 peak of $4,107, hovering around $4,000. Its previous all-time high is $4,878, and the cycle target is $5,185. The relative strength index and moving average convergence divergence suggest a bearish undertone. Support could be found between $3,252 and $3,680 in case of a correction.
Solana trades at $219. A daily candlestick close above $231.62 could end its sideways trend. Resistance lies at $264.59, and the cycle target is $359.81. Support in case of a correction could be in the $221.06 to $233.22 zone.
However, Solana’s progress may have been slowed by Pump.fun’s decision to end livestreams, leading to a cooldown in on-chain activity and network revenue. Whether Solana can recover and achieve greater adoption this cycle remains to be seen, with ETF approval or increased DEX usage as potential drivers.
Related topics:
SEC’s Stance on Solana ETFs and Crypto Market Developments
Bitstamp’s New Additions: Solana and Pepe Tokens for US Traders
