Solana Hits All-Time High Against Ether, Outperforms Bitcoin in Crypto Rebound

Cryptocurrencies continued their rally from Monday’s lows on Wednesday, with layer 1 network Solana’s token {{SOL}} being the fastest horse in the recovery.

A sharp relative rally for SOL has taken it to a new all-time high of $0.062 relative to ethereum {{ETH}}, up 7.5% in the last 24 hours and 13.6% in the last week, according to CoinGecko. ETH has also fallen to a three-year low against bitcoin {{BTC}}, now reversing any relative gains since the SEC surprised almost everyone in May by signaling its intent to approve spot ether ETFs.

SOL-ETH relative price breaks new all-time highs (TradingView)

In the weekly timeframe encompassing this weekend’s market turmoil, SOL was the best-performing asset among the crypto majors on the CoinDesk 20 Index, down nearly 11%, while BTC and ETH were down 14% and 25%, respectively.

“After the recent crash, SOL and the coin ecosystem are still looking good, especially when compared to other altcoins,” K33 Research analyst David Zimmerman wrote in a report on Wednesday. “SOLETH is making a nice all-time high since the massacre, while SOLBTC is also looking strong. Both closed in the green during the days of mass panic.”

Read more: Solana-Based Memecoins Soar as SOL Soars 38% from Monday’s Lows

“Solana’s resilience is largely due to its strong fundamentals,” UK-based digital asset investment firm Tagus Capital said in a market update on Wednesday. “The platform’s fundamental strength is evident in key metrics such as growth in active users, increasing volumes on decentralized exchanges (DEXs), and overall ecosystem expansion.”

One potential risk investors should keep in mind is rumors that market-making giant Jump Crypto is shutting down its digital asset business, Zimmermann noted. Crypto wallets affiliated with Jump sent ETH to exchanges this weekend and have unsold $500 million worth of ETH in the past two weeks, blockchain data watchers noted. Notably, Jump was a major early supporter of the Solana ecosystem, spearheading the development of the network’s highly anticipated Firedancer upgrade.

“Despite the uncertainty, SOL is showing strength and there’s no need to overcomplicate things,” Zimmerman said. “If you’re looking for long positions, SOL is a clear choice.”

According to crypto research firm Delphi Digital’s forecast earlier this year, the outperformance could continue with ETH potentially targeting a 0.1 price ratio and an 80% rally.

“(I) still think 0.1 is on the table,” said Michael Rinko, research analyst at Delphi. “It will require some Q4 fireworks, but it is possible.”