Ethereum investment funds have faced a staggering $60.70 million in outflows during the week ending June 29, which marks the most significant withdrawal the asset has seen since August of the previous year. This exodus is part of a continuing trend, with the total for the past two weeks rounding up to $119 million, positioning Ethereum as the asset with the poorest net flows to date for the year.
Meanwhile, in a contrasting turn, Solana-specific funds have reported inflows amounting to $1.6 million in the same week. Looking at the broader picture for the year, Solana funds have successfully attracted a cumulative $41 million.
The underlying performance metrics offer a rationale for the shift in investor sentiment. Solana has been outpacing Ethereum in terms of total-value-locked (TVL) growth, boasting a 121% increase year-to-date compared to Ethereum’s lagging 31.58%. Additionally, Solana’s decentralized exchange volumes have seen a climb of around 15% on a 30-day adjusted timeframe—meanwhile, Ethereum’s DEX volumes faced a sizable reduction of approximately 25%.
The memecoin trend, often seen as a barometer for investor enthusiasm in crypto subsectures, has also seen Solana outperform its elder peer. Memecoins native to the Solana ecosystem, such as Dogwifhat (WIF) and Popcat (POPCAT), are gaining traction rapidly and surpassing many of the joke cryptocurrencies based on Ethereum.
However, not all is gloomy for Ethereum. The price of its native token, Ether (ETH), is closely eyeing an upward rally that could potentially reach $3,700 in July, contingent upon its ability to hold above the significant benchmark of its 50-day exponential moving average, which hovers around $3,475. Should the Ethereum token breach this level and subsequently fall below the support confluence, it could see a retraction towards the 200-day exponential moving with an average price of approximately $3,100.
This volatile landscape reflects not only the shifting dynamics between two leading blockchain platforms but also underscores the rapidly evolving nature of cryptocurrency investments. With investors recalibrating their portfolios in line with performance metrics and platform developments, Ethereum’s standing as a market leader faces fresh challenges from up-and-coming networks like Solana, which continues to gain ground both in utility and popularity among crypto enthusiasts.
