Ethereum (ETH) Vs. Solana (SOL) - Short Term & Long Term Strategy

By Bfab | Good vibes | 13 Jul 2022

The latest Coinshares report (dated July 11) shows the inflows and outflows for the main cryptocurrencies:

d5c8e0de101cef9c06c98110ee997c0701296113fdf4efb2094479024b4f7aaa.png

The trends depend on the timescale:

Year-To-Date flows are strongly negative for Ethereum and highly positive for Solana.
Month-To-Date and week flows are positive for Ethereum and insignificant for Solana.

These trends can be interpreted as follows:

The current Ethereum inflows, for the third consecutive week, suggest a "turn-around in sentiment" after eleven consecutive weeks of outflows.
The other altcoin market, including Solana (SOL), has remained "remarkably inactive" this month so far with minor outflows totalling US$0.3m.

The author, James Butterfill, provides the following explanation for the sentiment recovery regarding Ethereum:

This improvement in sentiment may be due to the increasing probability of the Merge, where Ethereum moves from proof-of-work to proof-of-stake, happening later this year.

In summary:

Bitcoin (BTC) saw minor outflows, and slightly higher inflows into short-Bitcoin.
Ethereum (ETH) is the only altcoin which saw significant inflows in the last few weeks.
The other altcoins, like Solana (SOL), have remained relatively inactive with minor outflows.

In the short term, the sentiment recovery of Ethereum could help ETH to maintain its price or to limit the price decrease if BTC continues to dump. As the other altcoins like SOL are suffering from a lack of activity (i.e., volumes), their prices might continue to decrease in the short term. In the longer term, the positive Year-To-Date inflows for SOL show that this trend may resume as soon as the global situation could allow it. As long as the current situation remains fuzzy (with war, high inflation and fear), ETH seems to be the only altcoin which can benefit from significant inflows due to the upcoming Merge.

Disclaimer: this article does not contain any financial advice. The information is provided for general informational and educational purposes only.

Please find below a few links to earn a few coins...