Solana Surges: Can It Reach $500 Before Ethereum Hits $5,000?

Solana (SOL) and Ethereum (ETH) have been two of the most prominent cryptocurrencies in recent years, with each having its own unique features and use cases. As of late, Solana has been outperforming Ethereum in terms of price performance, raising questions among crypto investors about the possibility of Solana's price reaching $500 before Ethereum hits $5,000.

Currently, Solana's price stands at $134 after a significant drop of 18% in the past 24 hours. Meanwhile, Ethereum's price has also declined, falling by 12% to trade at $2,075. Despite these recent setbacks, some top asset managers have expressed bullish sentiments about Solana's price prospects for 2025, predicting that it could reach $520 this year.

Several factors contribute to the potential for Solana to outperform Ethereum. One of the most significant is the rapid growth of the Solana network, which has led to an increase in monthly active addresses. According to data from TokenTerminal, Solana had the highest monthly active addresses of 73.4 million, compared to Ethereum's 7.4 million. This growth indicates that users may be migrating from Ethereum to Solana, potentially leading to SOL outperforming ETH.

Furthermore, the 30-day DEX volumes on the Solana blockchain have surpassed those on Ethereum, with Solana's volumes reaching $109 billion compared to Ethereum's $88 billion. This trend suggests that the Solana network is gaining traction and could support a bullish Solana price prediction, potentially leading to a rally for SOL to $500 before Ethereum reaches $5,000.

In addition to network growth, potential ETF approval could serve as a catalyst for Solana's price to reach $500. The SEC is expected to make a decision about a spot SOL ETF by October, and an announcement by a former US president to include Solana in a US crypto strategic reserve has increased the chances of approval. If a spot SOL ETF is approved, institutional demand for SOL could lead to the altcoin outperforming Ethereum and potentially reaching $500 in 2025.

The SOL/ETH ratio has also been surging, reaching 0.065