With Bitcoin (BTC) hovering just above $110,000 and Ether (ETH) taking a breather after its record-breaking run, Solana (SOL) is grabbing the spotlight in the bustling crypto arena. Trading at approximately $211 on Monday, SOL has surged a remarkable 33% since its early August slump, emerging as a top contender in the CoinDesk 20 Index over the past month. The token’s impressive climb—up 34% against Bitcoin and 14% versus Ether since mid-August—signals a notable shift towards altcoins, according to analysts.
Altcoin Ascendancy
“The season of profit redistribution among holders of cryptocurrencies continues,” notes Sergei Gorev, head of risk at YouHodler, in a market dispatch to CoinDesk. He describes a migration of liquidity from BTC to secondary tokens, highlighting a “noticeable increase in the positive dynamics in capital flows to SOL.” This shift could be more than a fleeting trend, Gorev suggests, as corporate investors eye substantial, liquid projects like SOL and XRP for long-term holdings. This mirrors the broader trend of increasing interest in crypto ETFs, as detailed in our recent coverage of the 90+ crypto ETFs pending SEC approval.
Jeff Dorman, chief investment officer at Arca, sees SOL mirroring Ether’s earlier success story. He highlights Ethereum’s resurgence fueled by stablecoin adoption, robust ETF inflows, and the persistent appetite from digital asset treasuries (DATs). “SOL appears poised to repeat the exact same playbook that ETH just executed in the coming months,” Dorman asserts in his latest report.
The ETF Effect and Beyond
July witnessed the launch of the first U.S.-listed Solana ETF, albeit futures-based. Meanwhile, asset management heavyweights such as VanEck and Fidelity have thrown their hats in the ring for spot products, with decisions anticipated later this year. “At only one-fifth of ETH’s market capitalization, SOL’s price could be even more reactive to the flows if they materialize,” Dorman elaborates, emphasizing the potential impact of substantial capital influxes.
Dorman further reveals that three Solana-focused DATs are currently amassing funds, potentially funneling as much as $2.65 billion into SOL over the next month. Given the recent approval of the Alpenglow upgrade—set to enhance transaction speed and finality on Solana’s network—the timing couldn’t be more fortuitous.
A Bright Horizon
Adding fuel to the fire, Nasdaq-listed Galaxy Digital has announced the tokenization of its shares on Solana, a move that could bolster confidence and visibility for SOL. “SOL might be the most obvious long right now,” Dorman argues, drawing parallels to ETH’s explosive rise driven by $20 billion of new demand. “If the price of ETH rose almost 200% on roughly $20 billion of new demand, what do you think happens to SOL on $2.5 billion or more of new demand?” This optimism is further supported by Solana’s recent performance, as highlighted in our analysis of Solana leading major gains while Bitcoin traders warn of potential drops.
Yet, as with all market predictions, a degree of caution is warranted. The crypto landscape is notoriously volatile, and while current trends suggest a promising trajectory for Solana, investors should brace for possible fluctuations. The next few months could prove pivotal in determining whether SOL can indeed replicate Ether’s meteoric climb and cement its place among the crypto heavyweights.
Source
This article is based on: Solana Outperforms Bitcoin; Possibly Poised to Follow Ether’s Recent 200% Rally, Says Analyst
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
