In a new strategy session, host DataDash speak that he’s looking at the smart contract platforms Avalanche (AVAX) and Solana (SOL).
According to Merten, comparing the two to ETH is better than the US dollar or Bitcoin, as ETH’s overwhelming success in recent years makes it a better metric than Bitcoin.
“If you really want to see if your coin outperforms others on the market, you should be against ETH. It is the second largest cryptocurrency in this area and has outperformed Bitcoin by around 380% to 400% in the current cycle from 2019 onwards.
So let’s compare it to ETH because ETH is a really solid bet. It’s a really good medium reward, medium risk coin. ”
Source: Nicholas Merten
Turning to AVAX, Merten said that after the galloping rally of the past few months, AVAX / ETH could peak locally.
“AVAX did very well against ETH. If you look back since August, it’s up 422% against the ETH. Great rally, even after the recent pullback …
Anyway, following this chart I want to see the asset do well versus ETH, but every time it rises in the 0.034 ETH or USD 139.21 range it is pulled down …
I think we could see this repeat itself once again, or at least return to the previous support range ($ 0.014 ETH or $ 57.32), which is a slight 35-40% drop in price compared to ETH. A pretty good drop. ”
At press time, AVAX was down 2.1% for the day to $ 88.71.
As for SOL’s price action versus ETH, Merten noted that the pair is forming a bearish pattern after a strong rally over the past 18 months.
“But to be honest, SOL has grown a lot as a retailer before. From July to August 2020 the price increased by 336%. Then, in December 2020, the price rebounded 1,000% from lows.
We also look at the most recent rally, in August-September 2021, which is very similar to history, rising a little over 350% to 400%. Not bad!
But to be honest, prices have generally stagnated since September, and the trend starts to ebb from here. SOL is not gaining traction as it used to and we’ll see if it can keep up with ETH?
If the price drops below the 0.046 ETH or $ 188 range, I think ETH has favorable terms to outperform SOL as well as other major Layer 1 coins.
Source: Nicholas Merten
SOL is currently down nearly 4% and is trading at $ 192.24.
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