Solana’s Growing Challenge to Ethereum: A New Flippening?

Solana is emerging as a strong competitor to Ethereum, despite having a market cap that’s about one-fourth of Ethereum’s. As of October 23, the SOL/ETH pair reached a new high of approximately 0.0692 ETH, marking a 600% increase since 2023. This surge has prompted discussions about whether Solana could eventually surpass Ethereum in market value.

Solana’s DEX Volume Growth

A major factor behind Solana’s rise is the increasing usage of decentralized exchanges (DEXs) on its network. Since August 2023, daily DEX trading volumes on Solana have seen steady growth, often rivaling Ethereum’s during peak trading times. While Ethereum still leads in total DEX volume, Solana’s rapid transaction speeds and lower fees are driving users toward Solana-based platforms, especially for trading memecoins.

Memecoin activity, represented by popular projects like the “WIF & BONK sector,” has been a significant contributor to Solana’s recent growth. Analyst Jack suggests that Ethereum’s previous all-time highs may remain out of reach if Solana continues to attract Ethereum’s user base, stating: “SOL is doing what I didn’t think was possible: replacing the network and taking its users.”

Is the “Flippening” Possible?

The idea of a “flippening,” where Solana overtakes Ethereum in both technical capacity and market valuation, is not entirely out of reach. For Solana to match Ethereum’s current $304 billion market cap, it would need to increase 3.5 times its current value. Analysts at VanEck predict that Solana could reach 50% of Ethereum’s market value in the coming years, driven by higher daily active users and transaction volume.

However, analysts at Bitfinex emphasize that Solana’s long-term growth depends on expanding its user base beyond speculative trading. For sustained success, Solana must attract DeFi users, traditional financial institutions, and enterprises. The upcoming “Firedancer” upgrade in 2025, which aims to enable up to 1 million transactions per second, could be pivotal in making Solana more appealing to institutional investors.

In their report, Bitfinex analysts stated, “If Solana can capitalize on this growth, the ‘flippening’ could become more than just a speculative theory.”

Join Our New ReadySetCrypto Platform!

Join our new interactive, community-driven ReadySetCrypto platform!

What we’ve found is that the Crypto market moves too quickly to support a TradFi portfolio-based market.

The Crypto market is all about identifying opportunities AS THEY OCCUR, and understanding precisely when to enter, and most importantly, when to exit.

ReadySetCrypto has been re-engineered to help you identify these opportunities as they occur with clear, time-tested price-based signals.

Better yet, you can convert your account to this new service for the same price (or probably less) than what you’re paying now.

You can check it out for free for a week by signing up at readysetcrypto.ONE, where you can access the new site either on your workstation, or on a new mobile app by installing the Mighty Network app on Android or Apple.

If you’d like to convert your account, please let us know by contacting us at support (at) readysetcrypto.tempurl.host

We’ll take care of ensuring that your old subscription is closed down, and that we match (or improve) your monthly subscription rate. Annual rates are also available for a significant discount.

Convert your account today and let’s make this new year an amazing one!

Sincerely….your team at ReadySetCrypto