Traders forecast SOL/ETH reversal amid memecoin issues

Cryptocurrency traders anticipate a potential shift in the ratio between Solana (CRYPTO:SOL) and Ether (CRYPTO:ETH) as memecoin scandals negatively impact sentiment surrounding the Solana network.

The SOL/ETH ratio, after reaching a peak of over 0.08 SOL per 1 ETH, experienced a reversal starting Feb. 15, declining to approximately 0.06 SOL/ETH on Feb. 18.

Andy, the co-founder of Rollup Ventures, noted that Solana's reputation as the top chain for retail onboarding has been tarnished by insider trading and scammy behavior.

Andy added that Ethereum is now prepared for mainstream adoption and views the SOL/ETH ratio as an indicator of changing market sentiment.

Since mid-2023, SOL has significantly outperformed ETH, increasing the SOL/ETH ratio tenfold.

Solana's growth, with its total value locked (TVL) rising from about $1.4 billion to over $9 billion in 2024, was largely fueled by memecoin trading.

However, the memecoin Libra (CRYPTO:LIBRA), seemingly backed by Argentine President Javier Milei, saw its market capitalisation drop by roughly $4.4 billion within hours of its launch on Feb. 14.

Ethereum's spot price has faced challenges since March 2024, when the Dencun upgrade reduced transaction fees by around 95%.

Ethereum is now showing relative strength, with a nearly 30% rebound in February, recovering from lows of around $2,150.

Data from Dune Analytics indicates that data posted to Ethereum by layer-2s has more than tripled since March 2024, increasing fee revenues for the mainnet.

Ethereum has also seen substantial development in real-world assets (RWA) and agentic artificial intelligence.

At the time of reporting, the Ethereum (ETH) price was $2,673.78, and the Solana (SOL) price was $164.43.