After a sharp decline earlier this week, the crypto market is showing signs of recovery. Solana is particularly notable for its success, with SOL reaching a new record high against Ethereum (ETH). On August 7th, SOL jumped to $153.8, while ETH was trading at $2,516. Both cryptocurrencies have gained significantly in price after the recent market correction.
Solana Overtakes Ethereum
According to TradingView, the SOL /ETH ratio is 0.061. This ratio shows how many Solana tokens can be bought for one Ethereum token . If the ratio decreases, it means that the value of one ETH relative to SOL is increasing.
The increase in the ratio that is happening now suggests the opposite – that Solana is increasing in value relative to Ethereum. That is, one ETH can buy more SOL . This may mean that investors are showing more interest in Solana.
The second-largest cryptocurrency by market cap fell to a yearly low of $2,114 this week. SOL also fell, dropping to $110.23, its lowest in months. However, Solana has since risen 30%, while Ethereum has only risen 9.68%.
Traders have long been speculating that SOL could overtake ETH in market cap. While that hasn’t happened yet, Solana’s rising price suggests that it could happen.
At the time of writing, SOL is trading at $152.55, up nearly 8% in the last 24 hours. The asset’s market value is currently $71.1 billion. Meanwhile, the Ethereum rate has stabilized at $2,500. In total, over the past 24 hours, the indicator has decreased by 0.3%. The capitalization of the second main cryptocurrency on the market exceeds $302 billion.
About SOL
Solana is a blockchain platform for building highly scalable decentralized applications. The essence of Solana’s architecture is the use of a set of software algorithms that can eliminate the performance bottleneck caused by software when implementing a blockchain. Thus, transaction throughput can scale in parallel with network throughput. Particular attention is paid to ensuring that the architecture is scalable, secure, and decentralized, i.e., meets the basic requirements for a blockchain system.
The Solana blockchain allows developers to build payment networks, marketplaces, prediction markets, and other types of applications that require maximum transaction speed. The main advantages, in addition to speed, include low transaction fees (which do not become burdensome even with billions of users) and convenient interoperability between any second-layer projects.
