Can Solana Price Hit $500 Before Ethereum Hits $5K?

Solana (SOL) has been outperforming Ethereum (ETH) in terms of price performance. For instance, while Solana reached an all-time high in January 2025, Ethereum’s last peak was in 2021. This stark contrast between the competitors has crypto investors wondering: Can Solana price reach $500 before Ethereum hits $5,000? In this article, we explore whether this could happen in the near term. 

Solana price today trades at $134 after an 18% drop in 24 hours. At the same time, Ethereum price had declined by 12% to trade at $2,075. 

Why Solana Price Can Hit $500 Before Ethereum Hits $5,000 

Top asset managers have given a bullish Solana price forecast for 2025. As Coingape reported, Wall Street giants anticipate that SOL price could reach $520 this year. There are several reasons why Solana can hit this target before Ethereum reaches $5,000. Let’s explore: 

Solana Network Outpaces Ethereum 

Solana has often been labeled an “Ethereum killer” due to its fast speeds and low costs. Network activity shows that blockchain users may be abandoning Ethereum for Solana, making it likely for SOL to outperform ETH. 

Data from TokenTerminal shows that Solana had the highest monthly active addresses of 73.4M. Ethereum pales in comparison with only 7.4M monthly active addresses. 

Active Addresses

DeFiLlama also shows that the 30-day DEX volumes on the Solana blockchain came in at $109 billion, higher than Ethereum’s $88 billion. 

As the network grows, it supports a bullish Solana price prediction and a potential rally for SOL to $500 before the Ethereum price reaches $5,000. 

Potential ETF Approval 

Solana price has several catalysts that could spark gains to $500. The SEC is expected to give its decision about a spot SOL ETF by October. Moreover announcement by Trump to have Solana added to a US crypto strategic reserve has also increased the chances of approval. 

On Polymarket, there is a 76% chance that a spot SOL ETF will be approved in 2025. If this approval happens, the institutional demand for SOL could lead to the altcoin outperforming Ethereum and possibly reaching $500 in 2025. Moreover, while Ethereum has a spot ETF, the gradual outflows show that institutional interest is weak. 

Solana ETF

SOL/ETH Remains at Range Highs 

Solana has also been outperforming Ethereum as seen in the SOL/ETH ratio. This ratio has surged to 0.065, and it has also been moving within an ascending parallel channel, indicating that the SOL price has been gradually posting more gains than ETH. 

SOL/ETH: 1-week Chart

If SOL/ETH continues to move within this ascending parallel channel, it will show rising bullish momentum, making it more likely for SOL price to reach $500 before ETH price reaches $5,000. 

Solana Price Analysis 

Currently, the technical outlook for Solana price is weak because of the downturn across the broader crypto market. The RSI on the weekly chart is oversold, showing bears have the upper hand. Moreover, SOL had failed to defend support at $154. 

On the other hand, the flattening ADX shows weakening momentum, which may pave the way for a bullish reversal. However, strong buying pressure is needed to push SOL past the recent high of $298 to the 227.2% Fibonacci level of $535. 

SOL/USDT: 1-week Chart

Conclusion

While a surge in Solana price to $500 may not happen in the near term if the trend across the broader market fails to shift, network activity shows it is more likely for Solana price to reach $500 before ETH reaches $5,000. The approval of a SOL ETF and the rising interest in US altcoins could also support these gains. 

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