The narrowing market cap gap between Ethereum and Solana doesn’t necessarily indicate a definitive shift in capital winds. While Solana’s rapid growth—driven by its high-speed transactions and lower fees—has closed the gap, Ethereum retains a larger ecosystem, institutional backing, and DeFi dominance. Recent data shows Solana’s market cap at roughly 25-30% of Ethereum’s, up from much lower levels, suggesting some capital rotation. However, Ethereum’s ETF inflows and established infrastructure continue to attract significant funds. Solana’s rise reflects growing retail and developer interest, but it’s premature to call it a full shift—more like a rebalancing within the layer-1 space. Both chains coexist, serving different strengths, rather than one outright replacing the other.