The traction that Trump-linked memecoins have brought to Solana has helped the network gain some advantage over its rivals, especially Ethereum.
As Bitcoin’s price reaches new heights, Ethereum’s native token, Ether (ETH), is facing mounting pressure, reflected in a significant decline in the BTC-to-ETH ratio.
Trump’s memecoins propel Solana as Ethereum lags
Ethereum’s cryptocurrency continues to lose ground to competing tokens as it struggles to capitalize on the momentum generated by former President Donald Trump’s foray into the speculative digital assets market.
On Monday, the Ether-to-Bitcoin price ratio fell to its lowest in three years. At the same time, Bitcoin reached a new record of $109,241. Solana, on the other hand, saw its native token reach new highs over the weekend.
Since his November victory, the president’s pro-crypto stance has boosted many significant digital assets.
Solana’s recent surge was mainly driven by Trump and his wife, Melania, launching two memecoins on the blockchain in the lead-up to his inauguration. Trump’s coin saw frenzied trading, reaching a market cap of $15 billion before a sharp decline.
According to Le Shi, Hong Kong managing director at market-making firm Auros, Ether has been left behind in the latest memecoin wave, as many of the top memecoins have emerged within the Solana ecosystem.
Ether faces subdued demand and lacks new developments
Solana’s token price ratio against Ether reached an all-time high on Sunday, driven by speculation surrounding Trump’s coins. Ether remains underwhelmingly 30% below its 2021 peak.
Ether’s relatively subdued demand has raised concerns among investors. In the past three months, Bitcoin exchange-traded funds (ETFs) in the U.S. have attracted over $17 billion in net inflows, compared to just $3 billion for similar Ether products.
Le Shi noted that the market believes Ether has stagnated because there haven’t been any intriguing new breakthroughs.
Ethereum co-founder Vitalik Buterin recently said that the Ethereum Foundation’s leadership structure would change, with an emphasis on making the network more decentralized and censorship-resistant. Buterin stressed, however, that the entity will not engage in “lobbying regulators and powerful political figures.”
Although Trump’s memecoins generated significant interest, the broader crypto market saw a retracement of gains as Trump was sworn in on Monday. There had been expectations that he would issue an executive order making cryptocurrency a national priority, but as of now, no directive has been released.
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