Solana Outperforms Bitcoin and Ethereum in Key Metrics

• In key on-chain performance metrics, Solana has outperformed Bitcoin and Ethereum.
• Despite its performance thus far, Glassnode predicts more uptick to come.

Solana (SOL), currently the sixth-largest cryptocurrency, has outperformed Bitcoin (BTC) and Ethereum (ETH) in key metrics. According to Glassnode, Solana has seen more price increases and trading volume than Bitcoin and Ethereum.

Solana Leads Bitcoin and Ethereum in Daily Capital Inflows

Solana has made great progress in 2024, with new all-time highs and increasing activity on its blockchain. Solana’s journey to fame is not without challenges. The coin plunged to a low of $9 following the collapse of FTX in 2022. 

However, Solana soon recovered and increased by over 2000%, with its price outperforming Bitcoin and Ethereum, per Glassnode report. Since the 2022 event, Solana has outpaced the two leading cryptocurrencies in 344 of 727 trading days.

Additionally, Solana experienced higher capital inflows during the same period, as measured by the relative Realized Cap change. This suggests fresh capital flows and liquidity due to investors increasing demand for Solana. Glasnode ascribed Solana’s growth to the capital infusion from this new group of investors.

A key factor behind new investor growth is the surge in memecoin activity on the Solana blockchain this year. Increased demand for Solana-based memecoins pushed SOL to a new all-time high of $263 on November 23.

According to the Glassnode report, Solana has maintained a positive net capital inflow since September 2023. During this period, $776 million of new capital flowed into its network daily.

Furthermore, Glassnode identified the holder cohort with the biggest profit-taking volume since January 2023. According to the analysis, tokens kept for 1 day-1 week, 1 week-1 month, and 6-12 months yielded gains of $13.7 billion, $14 billion, and $15.7 billion, respectively. This indicates that these holders have an equal market share, accounting for 51.6% of total profit.

Furthermore, the MVRV ratio (a statistic that compares market capitalization to realized capitalization) is still within the +0.5 standard deviation range. This suggests that while the market is relatively heated, SOL could grow further before establishing a top for the cycle.

Solana Hits New Highs in Network Activity

As CNF reported, the blockchain has maintained robust network activity despite recent fluctuations in its price. New statistics show increased transactions, Total Value Locked (TVL), and on-chain volume.

Additionally, transaction volume has maintained a consistent upward trajectory for months, surpassing 67.77 million transactions in just 24 hours. This represents the highest figure recorded in nearly a year.

Solana has also captured the attention of crypto whales with its efficiency, scalability, low fees, and fast-growing ecosystem. Other characteristics that make Solana stand out include its dominance in DeFi and the NFT space.

As of this writing, SOL price was trading at $191.83, up 4.27% in the last 24 hours. If the price rises above the nearest resistance level at $249, SOL may seek the next obstacle at $302. This signifies a big increase from current levels.

[mcrypto id=”126000″]

Recommended for you: