Solana and Ethereum are neck and neck in terms of protocol fees and DEX volumes this month. Solana outperformed Ethereum in key on-chain metrics from October to November. Bitcoin fell below $100,000 and BTC's dominance stalled, but the altcoin season continued. Technical indicators point to the potential for Solana and Ethereum to rise.
Solana (SOL) trailed Ethereum (ETH) in October and November in terms of on-chain metrics such as protocol fees and decentralized exchange (DEX) trading volume. However, indicators show that the two altcoins are neck and neck for the first six days of December as the altcoin season continues.
Bitcoin hit an all-time high of $104,088 on Thursday before falling below $100,000 on Friday.
Solana and Ethereum compete on DEX indicators
Solana's recent gains and market capitalization gains have accelerated the “reversal” narrative. This means a scenario where SOL's market cap exceeds ETH's market cap. The development of Solana's meme coin ecosystem has furthered SOL's interests.
Indicators comparing the two altcoins on TheBlock show that the two are competing and at roughly similar levels in terms of protocol fees and DEX volumes. Solana outperformed Ethereum for two consecutive months in October and November, but that streak could end this month.
When it comes to Total Value Locked (TVL) and stablecoin volumes, Ethereum has the upper hand due to network effects and a vast ecosystem of layer 2 and layer 3 chains. However, by generating higher protocol fees, Solana outperforms Ethereum in terms of decentralized exchange metrics.
Bitcoin’s dominance weakens, supporting altcoins’ seasonal rally
Bitcoin's dominance is solidifying around the 55% level. Blockchaincenter.net's altcoin season index reads 86 on a scale of 0 to 100. This period is characterized by the top 50 altcoins consistently outperforming Bitcoin over a 90-day period.
While most altcoins rose alongside Bitcoin on their way to the $100,000 level, Solana and Ethereum could extend their gains based on technical indicators.
Solana and Ethereum price prediction
Solana is gearing up for a near 10% rally. The altcoin is currently trading close to the Fair Value Gap (FVG) and key support zones between $215.27 and $229.60.
The momentum indicator Relative Strength Index (RSI) is at 57 and is trending upward on the daily price chart. This supports the theory that SOL prices will rise further. Altcoins are currently in a state of consolidation. However, once the inefficiency zone is filled, SOL is likely to resume its rally towards an all-time high of $264.39.
SOL/USDT daily chart
The bullish thesis for SOL could be invalidated if the daily candlestick breaks below the $229.60 level.
If Ethereum (ETH) continues to rise, it could retest its all-time high of $4,868. The Moving Average Convergence Divergence (MACD) indicator and the Relative Strength Index (RSI) support the theory of Ether's gains.
The green histogram bar above the MACD neutral line and RSI reading of 66 confirms the bullish view on Ethereum.
ETH/USDT daily price chart
The bullish theory could be invalidated if Ethereum closes the daily candlestick below the FVG limit between $3,500 and $3,497. ETH could slip through the $3,000 psychological barrier.
