As many layer 1 platforms emerge, Ethereum’s pie at of the market share is being diluted. While many digital assets aim to be the “Ethereum Killer”, some of them have caught up and fared well, as the rest did not catch up the race.
Nicholas Merten, a well-known crypto expert, is comparing two layer-1 digital assets to the Ethereum (ETH) trading pair.
The host of DataDash tells his 486,000 YouTube viewers where he thinks smart contract platforms Avalanche (AVAX) and Solana (SOL) are headed in a new strategy session.
According to Merten, comparing both coins to ETH rather than the US dollar or Bitcoin (BTC) is a stronger barometer than Bitcoin because of Ethereum’s greater growth in recent years.
After the altcoin’s huge run in the last few months, Merten believes a local peak may be in the works for the AVAX vs ETH.
He says that Avalanche has outperformed Ethereum by a wide margin. When compared to Ethereum, it has increased by 422 percent since August. Even after the [recent] downturn, this is a fantastic rally, he opines.
The trader appreciates seeing an asset that performs well versus Ethereum, but it’s been dragged down every time it’s been up to this range [0.034 ETH or $139.21] historically.
He believes that the token will witness a repeat or at the very least a return to the prior support area [0.014 ETH or $57.32], which means it will most likely fall by 35 to 40% against Ethereum.
After printing enormous increases in the last 18 months, Solana’s price movement against Ethereum is displaying a bearish pattern, according to Merten.
He points out that Solana has had several rallies in the past. It experienced a 336 percent price increase here [from July to August of 2020]. Then come back here [December 2020] if you want to take a 1,000 percent move from the lows, enormous price multiples.
From the latest rise here [August 2021] through September, a little over 350% to 400%, which is extremely comparable to the history, he added.
However, the token has been stuck in a rut since September. The fad is starting to fade in this area. There is no same traction, so it’ll be interesting to see if it can hold its own against Ethereum, he says.
If Ethereum breaks below this region [0.046 ETH or $188], He believes it is extremely likely that it will begin to outperform Solana and other large layer-1 assets.