Traders keep watching the SOL/ETH price ratio for signs of change because their trust in Solana wanes due to memecoin scandals. The SOL to ETH exchange ratio reached 0.08 in January before it dropped down to 0.06 by February 18 based on data from TradingView.
After recent memecoin scandals Solana underwent reputation damage and expert voices say this affected the marketplace. Solana now faces public perceptions of fraudulent activity instead of boasting the best platform for ordinary consumers to join.
According to Andy of Rollup Ventures networks need sustained progress to restore their reputation in the industry. Andy thinks Ethereum will win upcoming mainstream application popularity because the SOL/ETH ratio shows changing market views.
Solana Surpasses Ethereum In Growth
Evidence shows Solana exceeded Ethereum’s growth during that time period as its Total Value Locked (TVL) rose from $1.4 billion to more than $9 billion according to DefiLlama statistics. The large growth during a specific trading boom led to problems for Solana’s network functioning.
On February 14 Libra (LIBRA) emerged as a memecoin with suspected endorsement from Argentine President Javier Milei at launch. During the first hours of trading LIBRA officials lost $4.4 billion worth of market value which attracted extra scrutiny into how Solana supported memecoin trades.
After this event SOL value suffered a 15% decline during the next two days. People conducting trading activity have increased their evaluation of Meteora and other Solana-based decentralized applications because of their recent doubts about the platform.
On February 17 Beanie an investor at Gm Capital accused Meteora the venture DEX of insider token trading because according to an X post the platform seemed to be trading its own tokens. The rising number of doubtful incidents harms the Solana blockchain system according to Runner XBT in his February 16 message.
The Ethereum network experienced major problems after implementing Dencun in March 2023 because it lowered transaction fees by 95%. According to VanEck analyst Matthew Sigel investors saw funding cuts as a reason to sell Ethereum due to inadequate trading levels.
During February Ether showed significant recovery when it went up by almost 30 percent from its low price of $2,150. Ethereum received a boost from the addition of three times more layer-2 network data which helped Ethereum revert to its usual fee revenue stream.
Ethereum’s advancement in issuing tokens from real-world assets and building intelligent systems leads investors to trust in its platform more strongly. Matt Hougan from Bitwise explains AI innovation mainly takes place on Solana according to his December interview.
According to Matt Hougan of Research at Bitwise everyone is primarily carrying out innovation on the ETH blockchain network. When market mood changes Ethereum returns to the spotlight while Solana deals with the negative effects from its quick rise linked to popular coins.
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