Ethereum vs. Solana: Glassnode Spotlights Unexpected Performance Shift

The cryptocurrency market is buzzing with the bullish momentum enjoyed by Bitcoin (BTC), which is also driving altcoin resilience. A closer analysis of market performance in the fourth quarter (Q4) of 2024 reveals interesting details of the dynamics characterizing assets like Ethereum (ETH) and Solana (SOL).

Solanas early dominance fades

In a post on X, Glassnode, a leading on-chain analytics platform, revealed an interesting performance shift between Ethereum and Solana. The figures show that for most of Q4, 2024, Solana outpaced Ethereum and Bitcoin in price performance.

This edge recorded by Solana might have been due to strong investor interest and momentum in the Solana meme coin community within that period. Up until early December, Solana witnessed faster expansion in its Realized Cap. Unlike Bitcoin and Ethereum, SOL reflected a strong weekly capital inflow of over 5%.

Looking at price performance, SOL outpaced both ETH and BTC for most of Q4 2024. However, since early December, ETH has taken the lead, outperforming the other two assets.

Today, the 30-day performance stands at:

ETH: +26.96%

BTC: +17.49%

SOL: +1.61%

A clear shift in momentum.…

— glassnode (@glassnode) December 16, 2024

For clarification, Realized Cap measures the value of assets based on their last moved price. This serves as an indicator of the capital inflow into the blockchain network. The Realized Cap gives insight into areas where investors deploy funds.

However, a significant shift in early December saw the trend reverse and Ethereum jump in the lead. The 30-day price performance indicates ETH leading with 26.96%, followed by BTC at 17.49% and SOL at 1.61%.

The figures suggest a noticeable slowdown in Solanas growth while ETH has climbed, possibly due to renewed investor confidence.

Ethereum and Bitcoin regain momentum

Since early December, Bitcoin and Ethereum have experienced rapid growth, with BTC outpacing Solana. The current data shows that BTC jumped by 1.89%, SOL by 1.11% and ETH by 1.03% in the past 24 hours. The figures hint at a rechanneling of funds from Solana to Bitcoin and Ethereum.

Experts say Solanas price dominance appears to have waned, while BTC and ETH are gaining traction. The broader market price of ETH and Bitcoin gives an idea of the increasing capital flows into these two assets. The movement reflects confidence in the two assets compared to Solana.