Solana Has the Potential to Surpass Ethereum? Here's What Crypto Academy Says

Bittime – Solana (SOL) is increasingly in the spotlight in the world of cryptocurrency. Many are starting to question whether Solana will be able to surpass Ethereum (ETH) in the near future. 

In a recent analysis from Crypto Academy, several important points were raised regarding the comparison between Solana and Ethereum. The following is a complete review based on the latest data as of August 16, 2024.

Solana vs Ethereum Valuation

According to the Crypto Academy, Ethereum's current valuation is at a very high Price-to-Sales (P/S) ratio, namely around 549 times its turnover. This reflects that Ethereum is considered too expensive for its current earnings potential. 

In contrast, Solana shows a much lower valuation ratio, around 224.5 times its turnover. This means that Solana is seen as cheaper and potentially offering greater upside for investors.

Read also: Latest Bitcoin Price Predictions According to Crypto Analysts

More Stable Solana Performance

The latest data shows that Solana's on-chain performance is much more stable than Ethereum. In the last 30 days, even though the price of Solana fell, the decline in revenue was only 8%. 

Meanwhile, Ethereum experienced a 41.9% drop in revenue. This indicates that Solana has a more resilient ecosystem in facing market volatility.

Increased Activity on the Solana Network

Additionally, activity on the Solana network continues to increase. Data shows a significant increase in the number of weekly, daily and monthly active users. 

In fact, trading volume on Solana's Decentralized Exchange (DEX) platform has surpassed Ethereum for the first time, indicating that more and more DEX users are switching to Solana.

Concerns Over Ethereum

On the other hand, Ethereum still faces several challenges. One of the main criticisms is the high gas fees, which make transactions on the Ethereum network more expensive. 

While this makes it easier for Ethereum to generate revenue, it also creates a barrier to wider adoption. 

Additionally, the sharp drop in revenue suggests that Ethereum may struggle to maintain its position in the long term if these fees continue to be an issue.

Solana's Future Potential

While there is a lot of optimism about Solana, some analysts remain cautious. Solana price is currently around $127, with a possible correction to $100 or even $60-50 if the market experiences further pressure. 

However, if Solana manages to get past this resistance area, there is a great chance of reaching an all-time high and starting a new “price discovery” phase.

Solana vs Ethereum: Which is Better?

Ultimately, the choice between Solana and Ethereum comes down to investor preference. 

Solana offers a lower valuation with greater upside potential, but Ethereum has the trust of large institutions and is considered more stable in the long term. 

However, with Solana's increasing performance, it is not impossible that Solana will surpass Ethereum in the future.

Conclusion

Solana shows great potential to surpass Ethereum, especially considering its lower valuation and stable on-chain performance. However, Ethereum remains a safer choice for institutional investors. 

Both cryptocurrencies have their respective advantages and disadvantages, and investment decisions should be based on in-depth analysis and the risk profile of each investor.

How to Buy Crypto on Bittime

You can buy and sell crypto assets easily and safely via Bittime. Bittime is one of Indonesia's best crypto applications, officially registered with Bappebti. 

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also ensure you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. Study Complete Guide How to Buy Crypto on Bittime. 

Monitor graphic movement of Bitcoin (BTC) price, Ethereum (ETH), Solana (SOL), and other cryptos to find out today's crypto market trends in real-time on Bittime.