The SOL/ETH ratio, a measure of the value of one Solana token compared to one Ether token, hit a record high after market volatility caused a sharp decline in cryptocurrency prices over the week. According to TradingView data, this ratio reached a new peak of 0.0595 on August 6.
This development follows a massive cryptocurrency sell-off, with total market value dropping by $500 billion. This decline was mainly due to turmoil in traditional financial markets, a significant sell-off by Jump Crypto, and broader macroeconomic instability.
The SOL/BTC ratio indicates that Solana outperformed Bitcoin during the current recovery phase.
On August 5, the price of Ether dropped by up to 22%, while Solana experienced an even steeper decline of 36% during the same period.
However, following the sell-off, SOL’s price rebounded by 35%, rising from a local low of $110 on August 5 to $144 at present. In contrast, ETH only increased by 15%, rising from its yearly low of $2,157 to its current price of $2,463.
Market analyst Kaleo noted that Solana’s strength compared to Bitcoin is impressive, with the SOL/BTC ratio aiming for new highs. He identified 0.01 as a strong target ratio.
Additionally, the daily accumulation/distribution metric on the SOL daily chart shows an upward trend. This suggests more investors are accumulating Solana, which is a positive sign for potential upward momentum, with the metric currently showing 297.43 million SOL.
Previously, the SOL/ETH ratio reached as high as 0.0591 in March during a strong price surge for Solana, pushing the asset to new all-time highs in market capitalization. Solana’s growth in recent months has highlighted the differences between these two cryptocurrencies and underscored Solana’s potential for development compared to Ether.
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