Ethereum's Bull Run Fueled by Spot ETFs and On-Chain Metrics, Can Solana Keep Up?

Ethereum's price has surged by more than 37% in the last week, reaching highs that haven't been seen since July 24. The surge can be attributed to growing interest in Ethereum spot ETFs, with on-chain metrics signaling that the bullish altcoin trend is still in full swing.

The recent Ether rally came hot on the heels of an uptick in long positions on the ETH futures market. Market data reveals that Ethereum’s total open interest in the derivatives market skyrocketed from 9.8 million ETH on November 5 to an all-time high of 13.2 million ETH by November 11.

Fueling this renewed demand for ETH is an upswing in network activity, as indicated by a rise in daily active addresses (DAA) on the Ethereum blockchain. On-chain data shows users are engaging more with the Layer 1 network, suggesting a surge in Ether token transactions. 

Ethereum Finally Gets the ETF Inflows It Deserves

Ether spot ETFs had their biggest inflow day yet on November 11, raking in over $295 million since their debut on July 23. 

Leading the pack, Fidelity’s Ethereum Fund (FETH) scooped up $115.5 million, while BlackRock’s iShares Ethereum Trust ETF (ETHA) came in hot on its heels with $101 million. 

Meanwhile, Grayscale’s Ethereum Mini Trust ETF (ETH) grabbed the bronze with $63.3 million in inflows, and Bitwise’s Ethereum ETF (ETHW) brought up the rear with $15.6 million. The rest of the U.S. spot ETH ETFs posting zero inflows.

This recent surge in inflows extends a trend that kicked off just last week, suggesting that growing institutional appetite for Ethereum investment products could push ETH prices toward their March 12 highs, possibly crossing that $4,000 mark.

‘Ethereum Killer’ Keeps Nipping At Its Heels

As you refresh your charts in anticipation of the next price rally, don’t forget about those pesky factors that holding it back. Solana, the so-called “Ethereum killer,”  continues to breathe down ETH’s neck, even managing to outshine the world’s second-largest blockchain in a few key areas.

First off, over the past few months, decentralized apps on Solana have collectively outperformed Ethereum dApps in revenue generation – a sign, according to industry insiders, of Solana’s growing utility.

Fueling Solana’s growth are apps focused on trading, decentralized finance, and speculative markets, including meme coins. Leading the charge is Solana’s flagship meme-coin trading platform, Pump.fun, which recently raked in $100 million in revenue within its first seven months, making it the fastest-growing revenue-generating protocol in crypto history.

The next growth catalyst is the potential approval of a Solana ETF in the U.S., which some market analysts believe is not too far-fetched, given SOL’s position as the third-largest digital asset after excluding Tether.

While Ethereum still reigns supreme with institutional backing, developer activity, and total assets locked on-chain, Solana enthusiasts argue that its technical architecture presents a compelling alternative.

Yet, despite Solana’s relentless attempts to catch up, the token’s market value remains a fraction of Ethereum’s, and it still has a long way to go to meet those bullish price forecasts. For now, Solana will just have to keep hustling to close that gap.

Solana Price Prediction: SOL/USD Aiming for $200 by End of Uptober | HODL FM

Solana price surge continues—could it hit $200? Discover key…

HODL FM: The Wildest Ride in the Crypto MarketRichard Adrian

Disclaimer: All materials on this site are for informational purposes only. None of the material should be interpreted as investment advice. Please note that despite the nature of much of the material created and hosted on this website, HODL FM is not a financial reference resource and the opinions of authors and other contributors are their own and should not be taken as financial advice. If you require advice of this sort, HODL FM strongly recommends contacting a qualified industry professional.