Which has the leading potential in Q4, Solana or Ethereum?

Since September 9, the supply ratio on exchanges of Solana has fallen from 5.29% to 4.72%, indicating accumulation. This is equivalent to about 9.06 million SOL leaving the exchanges, contributing to a weekly bounce back of 16.19% for SOL, raising the price to 250 USD.

In contrast, Ethereum has seen nearly 20,000 ETH moved to exchanges, weakening its price momentum. Supporting this trend, the SOL/ETH ratio has increased by 8.66% at the time of writing, marking the largest weekly rise since the beginning of April.

Chart SOL/ETH | Source: TradingViewSimply put, the fear of missing out (FOMO) is driving capital flow into Solana in this cycle.

The current setup speaks for itself: By the middle of Q3, Ethereum dominated investment in altcoins with a ROI of ( over 90%, pushing the dominance rate to a yearly high of 15%. Currently, Ethereum has fallen by 8.3%, while Solana is attracting 8 times the monthly increase of 7% of ETH.

In summary, Solana is attracting capital from Ethereum. The on-chain divergence shows that smart investors are actively adjusting their positions.

According to Coinphoton, this movement could shape the trend of cash flow in the fourth quarter.

Transaction fees help Solana to be widely adopted

As Coinphoton has pointed out, the adoption of Solana is increasing on Wall Street. However, it's not just a speculative influx of capital, as Ethereum still recorded an ROI of over 80% in Q3. So what factors are driving the flow of money into SOL? The story primarily revolves around cost-effectiveness, with Solana outperforming both Ethereum and Bitcoin )BTC(.

In September, the average transaction fee rose to below 3 USD for ETH and below 1 USD for BTC, while the transaction fee for SOL remained steady at 0.005 USD, making Solana user-friendly and unobtrusive. In summary, the L1 use case of Solana is significantly expanding.

![Will Solana or Ethereum lead in Q4? ])https://img-cdn.gateio.im/webp-social/moments-b480662b1839dadd1a9d09936580b4a5.webp(Source: Token TerminalIn reality, this divergence is turning into strong trading activity. On-chain data shows that the daily trading volume of SOL has increased by 135% as of now, while ETH only recorded an increase of 20%. Technically, this means that Solana is attracting nearly 10 times the daily cash flow compared to Ethereum, in line with its 17% monthly increase.

In summary, with this movement, extremely low transaction fees, and expanding L1 activity, Solana seems likely to continue to outperform Ethereum in the near future.

Therefore, Q4 may be the cycle of SOL.

Mr. Giáo