Solana vs. Ethereum: Which Layer-1 Will Reign Supreme?
- Investor shifts from BTC to ETH & SOL.
- ETH-BTC ratio reversal signals altcoin season.
- Solana gains ground on Ethereum, and market share surges.
Solana, along with Ethereum, is poised to lead the next altcoin season prompting one savvy investor to cut down on his Bitcoin allocation by 10%. Citing early signs of a reversal in the Ethereum-to-Bitcoin (ETH-BTC) ratio, the expert has maintained a 20% allocation for both Ethereum and Solana. This shift, historically observed during Bitcoins price discovery phases, mimics the Q4 2020 rally when ETH-BTC experienced parabolic growth.
Dennis Liu, aka Virtual Bacon, revealed his portfolio strategy. With Ethereums ETH-BTC ratio flashing early signs of a historic reversal and Solana emerging as the star performer of the cycle, the race for the top in the Layer 1 category is heating up. While Liu highlighted SOLs standout performance this cycle, the expert refrained from predicting its dominance over Ethereum.
I have decreased my Bitcoin allocation to 10% in preparation for the upcoming altcoin seasonNow, Im not necessarily saying SOL is going to still outperform Ethereum from this point on, but I also dont want to say I only want to hold Ethereum. Im really not sure which one will be the big winner in the Layer 1 category of this cycle, so Im keeping both Ethereum and Solana at the same percentage in my portfolio.
Instead, he expressed uncertainty about the ultimate leader in the Layer 1 category, opting for an equal allocation between ETH and SOL. This portfolio adjustment reflects cautious optimism about the altcoin markets potential in December 2024.
Solanas Firedancer Upgrade To Boost Network Performance
Recently market experts have highlighted the key enhancements for Solana slated for the upcoming year. This includes the launch of Firedancer, a significant upgrade to SOLs transaction processing capabilities. This, coupled with a doubling of blockspace and improved transaction landing pipelines, aims to alleviate congestion and improve overall network performance.
Moreover, Solana has been steadily gaining ground on Ethereum, capturing substantial market share and revenue in 2024. As per Syncracy Capital report, SOLs valuation has taken a major leap from a fraction of Ethereums to a whopping 33%, indicating the networks progress and increasing attractiveness.
Read more: https://www.tronweekly.com/solana-ethereum-reign-supreme/
Text source: TronWeekly
