{"id":2997,"date":"2024-01-30T11:03:07","date_gmt":"2024-01-30T11:03:07","guid":{"rendered":"https:\/\/solanacrypto.news\/2024\/01\/30\/why-solana-beats-ethereum-in-this-bull-cycle-crypto-expert\/"},"modified":"2024-01-30T11:03:07","modified_gmt":"2024-01-30T11:03:07","slug":"why-solana-beats-ethereum-in-this-bull-cycle-crypto-expert","status":"publish","type":"post","link":"https:\/\/solanacrypto.news\/2024\/01\/30\/why-solana-beats-ethereum-in-this-bull-cycle-crypto-expert\/","title":{"rendered":"Why Solana Beats Ethereum In This Bull Cycle: Crypto Expert"},"content":{"rendered":"
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\n\t\t\tWhy Solana Beats Ethereum In This Bull Cycle: Crypto Expert\n\t\t<\/p>\n

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\n\t\t\t\t30 Janeiro 2024 – 06:00AM
\n\t\t\t\t
NEWSBTC\n\t\t\t<\/p>\n<\/p><\/div>\n<\/p><\/div>\n

\n

<\/p>\n

In a recent analysis, Andrew Kang, co-founder and partner of
\nMechanism Capital, provided a comprehensive analysis of the
\ncryptocurrency market, focusing on the comparative strengths of
\nSolana (SOL) over Ethereum (ETH) in the current bull cycle. Kang
\nshared his insights via X, the platform formerly known as Twitter.
\nCentral to Kang\u2019s argument is the idea that in the current market,
\nSolana presents a more favorable trading option than Ethereum. He
\nstates, \u201cThe definition of insanity is repeatedly trying to long
\nETHBTC when longing SOLBTC (or SOLETH) is the much better trade in
\na bullish environment.\u201d This succinctly captures his perspective on
\nthe shifting dynamics between these major cryptocurrencies. Why
\nSolana Is The Superior Trade Than Ethereum Kang offers a
\nretrospective view of Ethereum\u2019s journey, noting, \u201cOver the first
\n6-7 years of ETH\u2019s life, there was a lot of uncertainty and lack of
\neducation around ETH. There were a lot of Bitcoin holders to be
\nconverted to Ethereum holders.\u201d He recognizes Ethereum\u2019s early
\nvolatility and its eventual emergence as a stable trading asset.
\nRelated Reading: Solana Breakout Looms \u2013 Will SOL Retake $100
\nBefore Start Of February? However, he suggests that this relative
\nstability has now become a double-edged sword: \u201cETH also became a
\n\u2018safe\u2019 risk-on asset that traders could get into in size. That\u2019s
\nwhat made it a great cross to trade. But over time, people\u2019s
\nallocation to eth vs btc started to harden and the amount of people
\nleft to convert whittled away.\u201d Addressing Ethereum\u2019s advancements
\nin technology, Kang points out a paradox. He states, \u201cWhile these
\n[Layer 2 solutions and Modular technology] might seem like good
\nthings, it is these characteristics\/innovations that weighs heavy
\non ETH during risk on periods where ETH previously outperformed.\u201d
\nHe suggests that these developments, though innovative, have
\nintroduced new complexities that impact Ethereum\u2019s performance in
\nbull markets. \u201cYes, you may have some conversion from BTC to ETH
\nduring risk on periods (much less so these days), but in this era
\nETH faces much more rotational pressure from those going from ETH
\nas their base asset to these very L2s, modularity coins, SOL, those
\ncapitulating ETHBTC longs, and other shitcoins that it is supposed
\nto benefit from,\u201d Kang claimed. Related Reading: Rising Stars:
\nReport Highlights 5 Solana Projects Set For Success In 2024 In
\ncontrast, the crypto expert highlights Solana\u2019s advantages,
\nasserting, \u201cNot only does SOL not face these same issues but it
\nalso has crossed the chasm in becoming a blue-chip Layer 1.\u201d He
\nemphasizes Solana\u2019s resilience and its appeal to conservative
\ninvestors who previously focused mainly on Bitcoin and Ethereum.
\nKang further elucidates, \u201cConservative giants that previously were
\ncomfortable with BTC and ETH have SOL as an easy, safe next step.
\nIt is this transition phase of becoming a new major or base asset
\nthat you want to ride. A young fast horse, not a horse encumbered
\nby the troubles of age, baggage and Jared Gray.\u201d Significantly,
\nKang notes a major shift in market dynamics, stating, \u201cThere was a
\nsecular shift in the collapse of ETHBTC volatility in 2023.\u201d He
\nposits that this shift has redefined the comparative advantage in
\nfavor of Solana. Concluding his analysis, Kang confidently asserts,
\n\u201cEven if that ever changes, SOLBTC will be the superior trade.\u201d At
\npress time, SOL was just 30% short of a new all-time high against
\nETH. Featured image from securities.io, chart from TradingView.com<\/p>\n

\n
\n\t\t\t\t\t\tEthereum (COIN:ETHUSD)
Gr\u00e1fico Hist\u00f3rico do Ativo
De Dez 2023 at\u00e9 Jan 2024<\/p>\n

\"Click<\/p><\/div>\n

\n\t\t\t\t\t\tEthereum (COIN:ETHUSD)
Gr\u00e1fico Hist\u00f3rico do Ativo
De Jan 2023 at\u00e9 Jan 2024<\/p>\n

\"Click<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Why Solana Beats Ethereum In This Bull Cycle: Crypto Expert 30 Janeiro 2024 – 06:00AM NEWSBTC In a recent analysis, Andrew Kang, co-founder and partner of Mechanism Capital, provided a comprehensive analysis of the cryptocurrency market, focusing on the comparative strengths of Solana (SOL) over Ethereum (ETH) in the current bull cycle. Kang shared his […]<\/p>\n","protected":false},"author":1,"featured_media":2998,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2997","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/posts\/2997","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/comments?post=2997"}],"version-history":[{"count":0,"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/posts\/2997\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/media\/2998"}],"wp:attachment":[{"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/media?parent=2997"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/categories?post=2997"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/tags?post=2997"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}