Ethereum Attracted $58 Billion, 2X Solana Market Cap
According to a post on November 16, @litocoen, a creator, noted that Ethereum attracted $58 billion in the past month as its prices rose above the $2,000 resistance level. This liquidity is double the total market cap of Solana, making Ethereum a different asset class and possibly setting it on a path towards $10,000.
Ethereum has been in an uptrend but is falling from the $2,000 level, failing to breach July 2023 highs. Despite adding 30% in the last month, it has been inching lower this week. This is disappointing for traders who expected the coin to soar.
While Ethereum struggles to increase, leading coins like Solana have been performing well. SOL is up by over 200% from October lows and has outperformed most coins in the top 10, including ETH and BTC.
Blame Liquidity For Ethereum’s Woes?
The performance gap could be partly due to lower liquidity in Solana. Ethereum’s addition of $58 billion in liquidity in the last month is double Solana’s total market cap of $26 billion as of November 16. Lower market cap coins are typically less liquid and more volatile.
Earlier, MakerDAO mentioned exploring deploying a new blockchain using Solana code. This would be significant because MakerDAO has historically relied on Ethereum, and DAI is only available on the pioneer blockchain.
Hot Take: Are We Witnessing A Paradigm Shift In The Crypto Market?
The difference in liquidity between Ethereum and Solana highlights a potential paradigm shift in the crypto market. While Ethereum remains a dominant force attracting significant capital from the community, new contenders like Solana are showing promising signs of growth. As these dynamics play out, it will be interesting to see how they shape the future of the crypto space.
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