Degen

Solana's Struggle Against Ethereum: Key Insights on SOL/ETH Ratio Decline

Solana (SOL) has experienced a significant decline against Ethereum (ETH), with the SOL/ETH ratio dropping by over 25% in late January. This decline followed a brief period where SOL outperformed ETH due to the TRUMP memecoin launch. 

However, broader market concerns, including Chinese AI fears and U.S. tech overvaluation, contributed to SOL's underperformance. Despite this, Solana has shown resilience in some areas, such as surpassing Ethereum in monthly revenue for January. The SOL/ETH ratio is approaching key support levels, suggesting a potential rebound if market conditions improve. Solana's daily trading DEX volume has also seen a sharp decline, impacting its price. The $220 price level is crucial for SOL, with a potential drop to $200 if breached.