Solana (SOL) has notably outperformed Ethereum (ETH) since the beginning of autumn, potentially living up to its moniker as the “ETH killer.” It has become one of the most eye-catching altcoins in the 2023 market, showing a significant lead over Ethereum.
The SOL/ETH price ratio has favored Solana for the first time since 2021, as of September, indicating a widening gap between the two altcoins. This shift highlights Solana’s recent surge in value relative to Ethereum.
Solana-based altcoins have been gaining traction, outperforming their Ethereum counterparts and triggering an increase in inflows. According to a report by CoinShares, as of December 16, there has been a positive fund flow of $156 million into Solana and its related altcoins since the start of the year, compared to just $15 million for Ethereum.
At the time of writing, SOL’s price had increased by 6% to $87. Over the past year, SOL has seen an incredible value increase of over 500%. The accumulation in the cryptocurrency continues to be strong, with the 50-day simple moving average (SMA) being above the 200-day SMA, a pattern that has persisted since October.
Market analysts consider such conditions as a sign of a strong structure, often referred to as a “golden cross” when a short-term SMA crosses above a long-term SMA. Despite a slight overall market retreat in crypto accumulation, SOL’s selling pressure is being outweighed by ongoing purchases, as indicated by the Relative Strength Index (RSI) at 62.88 and the Money Flow Index (MFI) at 69.96, suggesting a preference for accumulation over selling among SOL traders.