It’s hard to ignore the buzz around Solana (SOL) lately, especially when you look at how it’s been performing against Ethereum (ETH). Think about it: Solana already hit a new high back in January 2025, while Ethereum is still chasing its 2021 peak. This difference has everyone in crypto asking the same question: Could Solana actually reach $500 before Ethereum climbs all the way to $5,000? Let’s dive into the details and see if this ambitious price target for Solana is really within reach in the near future.

Right now, Solana is trading around $134, after a recent dip of 18% in the last 24 hours. Ethereum hasn’t been spared either, dropping by 12% to its current price of $2,075.

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

Big players in asset management are definitely seeing potential in Solana, with some really optimistic predictions for 2025. As we’ve reported before on Coingape, Wall Street analysts are even suggesting SOL could hit $520 this year! So, what’s driving this confidence, and why might Solana get to $500 before Ethereum reaches $5,000? Let’s break down the key reasons:

Solana Network Outpaces Ethereum

Solana’s often called an “Ethereum killer” – and it’s not just hype. People are drawn to its speed and lower fees. Looking at the network activity, it seems like users are actually making the switch from Ethereum to Solana. This shift in user preference could seriously give Solana the edge it needs to outperform Ethereum.

The numbers tell a story. Data from TokenTerminal reveals that Solana boasts a whopping 73.4 million monthly active addresses. Ethereum? It’s lagging far behind with just 7.4 million. That’s a huge difference in user engagement!

And it’s not just active users. DeFiLlama’s data also shows that Solana’s 30-day DEX volumes hit $109 billion, again, surpassing Ethereum’s $88 billion. People are actually *using* Solana for trading.

This kind of network growth is a strong sign, fueling bullish predictions for Solana’s price. It definitely makes the case stronger for SOL to reach $500 before Ethereum hits that $5,000 mark.

Potential ETF Approval

There are a few things that could really ignite Solana’s price and send it soaring to $500. One major catalyst is the potential approval of a spot SOL ETF. The SEC is expected to make a decision on this by October. Plus, recent buzz about Trump mentioning adding Solana to a US crypto strategic reserve has further boosted those approval chances.

Right now, Polymarket is giving a 76% probability to a spot SOL ETF being approved in 2025. If that happens, get ready for a potential surge of institutional money flowing into SOL. This institutional demand could easily push Solana to outperform Ethereum and potentially hit that $500 price target in 2025. Interestingly, even though Ethereum already has a spot ETF, we’re seeing some outflows, suggesting institutional interest isn’t as strong as you might think.

SOL/ETH Remains at Range Highs

Another way to see Solana’s strength is by looking at the SOL/ETH ratio. This ratio essentially shows how Solana is performing *relative* to Ethereum. Right now, this ratio has jumped up to 0.065 and is trending upwards within a clear ascending channel. This upward movement suggests Solana is consistently gaining ground and outpacing Ethereum in terms of price.

If this SOL/ETH ratio keeps doing its thing within this channel, it’s a good sign of growing bullish momentum. This kind of relative strength makes it even more plausible that Solana could hit $500 before Ethereum reaches $5,000.

Solana Price Analysis

Right now, if we look at the technical charts for Solana, things seem a bit shaky. The overall crypto market is experiencing a downturn, and Solana isn’t immune. On the weekly chart, the RSI is showing oversold conditions, which tells us sellers are currently in control. Plus, Solana recently struggled to hold its support level at $154.

However, it’s not all doom and gloom. The ADX indicator is flattening out, suggesting that the downward momentum might be losing steam. This *could* open the door for a potential bullish reversal. But, for that to happen, we need to see significant buying pressure to push SOL past its recent high of $298 and up to the 227.2% Fibonacci level around $535.

Conclusion

Okay, so while predicting a specific timeframe in crypto is always tricky, especially if the whole market takes a turn, the data suggests it’s definitely *possible* for Solana to hit $500 before Ethereum reaches $5,000. Solana’s strong network activity is a major factor, and the potential approval of a SOL ETF, along with growing interest in US-backed altcoins, could really fuel those gains. Keep an eye on how these factors develop – they might just pave the way for Solana to reach that $500 milestone first.