Key Points
- Solana’s fundamental metrics are believed to be inflated, according to some analysts.
- Despite Solana outperforming Ethereum in price since June, it has underperformed this week.
There’s a lot of data showing that Solana (SOL) is surpassing Ethereum (ETH) in several key areas, including revenue and decentralized exchange volume. This has strengthened the narrative that SOL could potentially replace ETH.
However, there’s been a significant disagreement on this topic among industry leaders and market observers. Market watcher, Flip Research, has argued that Solana’s data is filled with fake and inflated metrics.
Disagreement on Solana’s Fundamentals
Flip Research’s views have received mixed reactions. Some agree with the analysis, stating that Solana’s metrics are not as they appear. Meanwhile, others, like Mert Mumtaz, CEO of Solana-focused dev platform Helius Labs, agree with some points and disagree with others.
Mumtaz acknowledges the presence of artificial volume and MEV (maximum extractable value) issues on Solana. However, he disagrees with the idea that Solana’s value is solely derived from memecoins.
Price Performance of Solana and Ethereum
Moving away from the debate on fundamentals, let’s look at the price performances of these two competing digital assets. The SOLETH ratio, which tracks SOL’s performance relative to ETH, was 0.058 at the time of reporting, meaning that SOL was worth 0.058 ETH.
SOL was trading below $180, while ETH was trading below $3300. The weekly chart for SOLETH was down by 3.6%, indicating that SOL underperformed ETH this week.
However, SOL has been outperforming ETH since late June and could potentially rally higher if it surpasses its all-time high.
