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Solana (SOL) is experiencing a fantastic phase, particularly when compared to Ethereum (ETH). This is largely due to the popularity of memecoins, raising questions about whether this dominance is sustainable in the long term.
Solana Leads Ethereum in the DEX Sector
Currently, Solana dominates the decentralized exchange (DEX) market. According to analysts from OKX, Solana owes this dominance to its “lightning-fast transactions, minimal fees, and developer-friendly tools.”
It’s as if Solana has “drunk Ethereum’s milkshake”, say OKX analysts, citing charts from Dune Analytics.
These charts indicate that during the last week of December, Solana briefly controlled 89.7% of the DEX market. Over the past five weeks, Solana’s market share has remained consistently above 50%.
Solana Maintains Its Lead Despite Market Volatility
OKX argues that Solana continues to maintain its dominance in the decentralized exchange sector, despite volatility from pump.fun—the launch platform for memecoins.
“Solana is outperforming nearly every other blockchain in almost every category,” according to OKX.
Solana: The Blockchain for Retail Users
From this, analysts conclude that Solana has become the go-to blockchain for retail investors.
However, this raises an important question for the future: What happens to Solana if the demand for memecoins declines?
The number of memecoins continues to grow uncontrollably, and at some point, this could end in disaster.
Can we really expect people to still hold $TRUMP in their portfolio 10 or 20 years from now? The same applies to Dogecoin and other memecoins.
Over the last few years, these coins have attracted attention due to their high returns—essentially functioning like a casino. But will people continue falling for this trend indefinitely?
Ethereum’s Long-Term Advantage
In this regard, Ethereum appears to have the upper hand.
Ethereum is the blockchain on which 82% of the more than $5 billion in Real World Assets (RWAs) have been issued, including tokenized U.S. government bonds.
This highlights Ethereum’s stronger position in real-world financial applications, compared to Solana’s memecoin-driven dominance.
SOL Price Analysis & Trading Tips
Solana (SOL) is currently trading at $239.68, showing signs of consolidation after a recent recovery from its support zone around $220. The price is now testing resistance at $240-$250, a key level that has acted as both support and resistance in the past.
RSI & Momentum:
- RSI is at 52, indicating neutral momentum.
- If RSI moves above 60, it could confirm a bullish continuation.
- A drop below 40 may signal weakening buying pressure.
Solana needs to break and hold above $250 for a continuation of its bullish trend. If rejected, a pullback to $220-$210 support is likely.
Trading Tips:
✅ Long Entry: If SOL breaks $250 with volume, target $270-$280.
✅ Short Entry: If SOL gets rejected at $250, short towards $220 support.
✅ Risk Management: Set stop-loss below $230 for longs and above $255 for shorts.
Breakout watch: If SOL reclaims $250, expect an aggressive move toward $270+!
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