Rotation out of ETH into SOL causes another surge in bearishness

Ethereum fear, uncertainty, and doubt (FUD) have spiked again amid an apparent rotation into Solana, while ETH price in terms of BTC has fallen to its lowest level in three-and-a-half-years.

On Oct. 24, Cointelegraph reported that Solana has surged about 600% against Ethereum since 2023, primarily driven by memecoin mania.

The rise of Solana against Ethereum has sparked discussions about its potential to flip Ethereum’s market capitalization. Still, it has a long way to go with Ethereum’s market cap currently over $300 million while Solana’s is just $82 million, according to CoinGecko.

Meanwhile, the ETH/BTC ratio has fallen to its lowest level since April 2021, reaching 0.037 on Oct. 24, according to TradingView, as Ether prices continued to retreat while Bitcoin recovers.

ETH has fallen about 9% since its two-month high of $2,760 on Monday, Oct. 21, dipping below $2,500 on Thursday. Meanwhile, Bitcoin has recovered almost all of its losses from this week’s market retreat, tapping $68,820 during late trading on Oct. 24, according to CoinGecko.

Ethereum developers and advocates have been coming to the blockchain’s defense, with one core developer commenting on the blockchain’s so-called “flaws.”

In an X post on Oct. 24, core developer Eric Connor brushed off criticism about layer-2 user experiences, fragmented liquidity and development speed, arguing Ethereum remains the leading smart contract platform committed to true decentralization, with significant institutional adoption and developer activity.

Meanwhile, independent trader Bob Loukas admitted to being critical of Ethereum, saying: “What we’re seeing is more just a repricing of where the economic activity is and what people are using these [layer-2] chains for ‘today,’” as value gets distributed across the ecosystem.

Ethereum educator Anthony Sassano said that most of the FUD appears to be related to ETH’s underperformance.

“It just seems like these complaints only exist when ETH is trading weakly against other assets – price drives sentiment,” he said in a post on X on Oct. 24.

Founder of Solana developer tools firm Helius, Mert Mumtaz, reiterated his support for the Ethereum ecosystem in a post on X on Oct. 25.

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