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    The real flippening? Solana price hits new record high against Ethereum

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    30s Summary

    Solana (SOL) is seen as a potential rival to Ethereum (ETH), as it has seen a significant surge, up 600% since 2023. Despite Ethereum continuing to dominate in DEX trading volume, traders are increasingly choosing Solana due to its lower transaction fees and faster transaction speeds. Its popularity amongst memecoin projects is a driving force behind its growth. However, Solana would need to grow three and a half times its current size to reach Ethereum’s $304 billion valuation. Some analysts warn that Solana may be overvalued against Ethereum and that a substantial price correction may be imminent.

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    Hey there! Solana (SOL) has been grabbing a lot of attention lately as a potential threat to Ethereum (ETH). Despite having a much smaller market cap than Ethereum, it’s still making serious waves.

    On October 23, SOL was trading super-high against ETH, part of its huge surge where it’s jumped about 600% since 2023. This has sparked heaps of chatter about whether Solana could even overtake Ethereum’s market size somewhere down the line.

    Why’s everyone so bullish about Solana? Well, it’s seeing more and more use, and there’s some updates in the pipeline that might help it to chip away at Ethereum’s dominance in the world of blockchain.

    One of the big things driving Solana’s surge is the booming use of decentralized exchange (DEX) on its platform. Since August 2023, Solana’s daily DEX trading volume has kept on growing, sometimes even beating Ethereum’s volume during peak periods.

    So, despite Ethereum continuing to rule in DEX trading volume, it looks like traders are increasingly turning to Solana, and its lower transaction fees and speedy transaction speeds are making it a popular place for a boatload of new tokens to launch, particularly in the memecoin space.

    This massive interest in memecoins amongst Solana DEX users, and a surge in popular memecoin projects, have played a huge role in Solana’s recent buzz. This could be a gamechanger, shifting how people use Solana-based DEX platforms.

    However, Solana currently needs to grow three and a half times bigger to reach Ethereum’s $304 billion valuation. But, VanEck analysts reckon Solana could reach 50% of ETH’s value in the coming years if it keeps beating Ethereum in terms of daily users and transaction volume.

    Still, Bitfinex analysts reckon Solana needs to draw in more than just speculative traders if it wants to keep growing long-term. They believe Solana needs to attract those in DeFi, traditional finance institutions, and enterprises. They’re excited about Solana’s Firedancer upgrade in 2025, which could help its network handle up to a whopping 1 million transactions per second and make it even more attractive to big investors and institutions.

    But on the other hand, there are a few warning signs suggesting Solana might be overvalued against Ethereum, and there could be a correction on the way. Multiple indicators are pointing towards a possible fallout, including indicators pointing towards it being overbought, a bearish divergence, and the potential for a rising wedge breakdown.

    If a breakdown does happen, SOL might drop down into the 0.0357-0.0436 ETH range by early 2025, which could be a drop of 40-50% from where it’s at right now. Like always, remember to do your own research before making any investment decisions!

    Source: Cointelegraph

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