Solana loses ground on bitcoin and Ethereum

Solana’s SOL $171.41 Solana -0.17% Market capitalization $83.77 billion VOL. 24 hours $0.27 billion position on Bitcoin BTC $96,316.91 Bitcoin -0.15% Market capitalization $1.91 trillion VOL. 24 hours $0.98 billion continues to weaken. According to analysts, this may indicate a change in market trends. Since mid-January 2025, the SOL/BTC exchange rate has been showing a steady decline, with the latest data showing a drop from 0.0024 BTC to 0.0020 BTC. Weakening demand and increasing sales pressure only reinforce this trend, which may indicate that the market is entering a bearish phase.

One of the important indicators is the Sharpe ratio, which measures the risk-return ratio of an asset. In the historical perspective, its peak values coincided with periods of growth in the SOL price, while sharp drops in this indicator were accompanied by periods of increased volatility. At the time of the analysis, the coefficient was in the neutral or negative zone, indicating a decrease in Solana’s risk-return compared to Bitcoin.

Another key indicator is the Normalized Risk Metric (NRM), which demonstrates the level of market risk. High values of this metric are traditionally associated with market overheating and possible corrections, while low values signal periods of accumulation. The current level of NRM indicates a phase of market equilibrium when investors are taking a cautious stance on Solana.

A comparison of SOL/BTC and ETH/BTC also revealed significant differences. Ethereum ETH $2,788.16 Bridged Ether (StarkGate) 3.75% Market capitalization $0.24 billion VOL. 24 hours $1.18 billion shows more stable dynamics and less volatility, which makes it more attractive to institutional investors. Solana, on the other hand, remains a high-risk asset with short up and down cycles. This means that its price is more sensitive to market speculation and the activity of large players.

The current situation on the Solana market shows a decline in investor interest compared to Bitcoin. If no factors emerge in the near future that can change this trend, SOL/BTC may continue its downward movement, and the cryptocurrency itself may lose some of its positions against BTC.