Over the past three months, the cryptocurrency market has experienced an upward trend, with Solana outperforming Ethereum in gains. However, a recent 8.9% surge in Ethereum’s price within 24 hours has signaled a potential investor shift back to Ethereum. As of the writing of the article, Ethereum was trading at $2,378, raising questions about its future prospects.
Jordi Alexander, the Chief Investment Officer of Selini Capital, ignited the crypto community’s interest on December 27th by suggesting that “Ethereum’s revenge” is starting. Alexander pointed to several foundational elements for a potential upward move in Ethereum’s price, including rallies in certain altcoins and Michael Saylor’s purchase of $615 million worth of Bitcoin on December 26th.
Alexander sees compelling risk/reward in Ethereum, predicting the formation of a “liquidity black hole” in January. Adding to the bullish sentiment, popular investor and analyst Pentoshi set a target price for Ethereum at approximately $3,485, sharing his perspective on the platform.
The rivalry between Solana and Ethereum supporters has escalated over the past few weeks. According to TradingView data, Ethereum’s year-to-date gains of 102% are overshadowed by Solana’s impressive 951% increase since the beginning of the year.
Solana’s significant price performance and transaction volume in its ecosystem have led many to claim that its lower fees and faster payment times make it superior to Ethereum. Recent airdrop events and the hype around memecoins in the Solana ecosystem have further spread this sentiment.
Despite this, Ethereum advocates argue that the network’s architecture is more suitable for larger organizations operating within the ecosystem. They point to Layer-2 scaling solutions like Optimism and Arbitrum as examples of cheaper fee structures on the Ethereum network.