Solana’s Stablecoin Inflows Beat Ethereum in 2025 – Is $SOL Poised to Outperform?

However, SOL bounced back sharply yesterday after it flashed-crashed to its lowest levels since January 13. Trading volumes today have exceeded the average only halfway through the American trading session.

This positive performance has managed to keep SOL above the critical 200-day exponential moving average (EMA) line. That said, both the RSI and the MACD are neck-deep in negative territory and below their respective signal lines.

It would need some serious buying power to propel SOL back to its mid-January levels and Trump’s decision to impose tariffs and start a trade war may not help this cause. Moving forward, unless there’s a clear signal on any of these two oscillators that the trend has changed, the short-term outlook is still negative for SOL.

On the positive side, the long-term prospects of SOL continue to be promising considering how fast it is challenging Ethereum’s dominance of the smart contracts space.

Ethereum’s DeFi Applications are Facing a Growing Number of Competitors

Solana outperforms Ethereum in terms of scaling as the former can process a higher number of transactions at a much lower cost without the use of layer-two protocols.

Meanwhile, other decentralized smart contract platforms like Sui (SUI) have emerged lately to compete with both Solana and Ethereum as they are even more efficient.

In addition, layer-one decentralized protocols like Hyperliquid (HYPE) have also captured investors’ attention as they could become the norm in the DeFi space – protocols that do not rely on third-party blockchains to function.

What seems to be clear is that Ethereum’s long-standing reign could be coming to an end unless they perform significant upgrades that allow the network to deliver faster transaction processing speeds at lower gas costs.

Compared to Bitcoin (BTC), which is considered by many as digital gold, the demand for Ether (ETH) is determined primarily by its network activity. If its ecosystem shrinks, so will the value of its native asset.