The cryptocurrency landscape is evolving rapidly, and with it, investor preferences are shifting. Once dominated by Bitcoin (BTC) and Ethereum (ETH), the market is now witnessing a growing sentiment: Solana (SOL) may be emerging as the new preferred benchmark asset in a bull market environment.
Andrew Kang, co-founder of Mechanism Capital, has been vocal about this transition. In a widely discussed analysis, he argues that longing SOL/BTC or SOL/ETH has become a more compelling trade than holding or increasing exposure to ETH/BTC — especially in bullish conditions.
"The definition of insanity is repeatedly trying to long ETHBTC when longing SOLBTC (or SOLETH) is the much better trade in a bullish environment."
— Andrew Kang
This bold statement challenges the long-standing hierarchy in crypto investing and raises an important question: Is Solana truly ready to step into the spotlight as the third pillar of digital assets alongside BTC and ETH?
The Shifting Landscape: From ETH Dominance to New Contenders
For nearly seven years, Ethereum has stood as the primary alternative to Bitcoin. As smart contract platforms gained traction, ETH became the go-to asset for investors seeking exposure to decentralized finance (DeFi), non-fungible tokens (NFTs), and Web3 innovation.
However, as Ethereum matured, so did its market behavior. What was once a high-growth, high-volatility asset has gradually transformed into a relatively stable, low-volatility risk-on asset. With widespread adoption came reduced upside surprise — and diminishing marginal returns for early movers.
As Kang notes, the era of rapid ETH accumulation by institutions and retail investors appears to be slowing. The uncertainty and educational barriers that once surrounded $ETH have largely dissipated. Today, Ethereum is no longer seen as a speculative moonshot but as a foundational layer — secure, but perhaps less explosive in growth potential.
Are Layer 2s, Restaking, and Modularity Actually Hurting ETH?
At first glance, developments like Layer 2 scaling solutions, restaking protocols (e.g., EigenLayer), and modular blockchain architectures appear to be strong tailwinds for Ethereum. These innovations promise improved scalability, security, and composability.
But Kang presents a counterintuitive perspective: these very advancements may be diluting Ethereum’s value capture.
Here’s how:
- Value leakage to L2s: As more activity migrates to Layer 2 networks like Arbitrum, Optimism, and zkSync, transaction fees and user engagement increasingly flow away from the Ethereum mainnet.
- Restaking分散s focus: While restaking enables new trust-minimized services, it also creates competing ecosystems that rely on ETH’s security without necessarily contributing back to its native economy.
- Modularity introduces fragmentation: By decoupling execution, settlement, and data availability layers, Ethereum risks becoming a "commodity settlement layer" rather than the central hub of value.
In contrast, Solana operates as a monolithic, high-performance blockchain designed for speed and efficiency. It avoids much of the complexity and fragmentation seen in Ethereum’s expanding ecosystem — making it easier for developers and users to build and transact seamlessly.
Solana: The Resilient L1 Blue-Chip
Despite facing significant challenges — including network outages and the collapse of major ecosystem players like FTX — Solana has demonstrated remarkable resilience.
Unlike many other Layer 1 blockchains that faltered under pressure, Solana has:
- Maintained strong developer activity
- Attracted top-tier projects in DeFi, NFTs, and consumer apps
- Achieved sub-second transaction finality with near-zero fees
- Built a robust community-driven recovery after setbacks
This durability has earned Solana increasing credibility among institutional and retail investors alike. Many conservative holders who once diversified solely between BTC and ETH are now allocating meaningful positions to SOL — not as a speculative bet, but as a strategic core holding.
Kang sees this shift as a sign that Solana is entering the mainstream adoption phase, where it’s no longer viewed as a risky altcoin but as a reliable digital infrastructure play.
👉 See how next-generation blockchains are redefining performance and scalability standards.
A New Benchmark Asset? The Case for SOL/BTC
Historically, BTC served as the base currency in crypto trading pairs. Then came ETH/BTC as a key metric for assessing altcoin strength relative to Ethereum.
Now, SOL/BTC and SOL/ETH are gaining traction as leading indicators of market momentum.
Why?
- Higher beta in bull markets: SOL has consistently shown stronger upside performance during rallies.
- Strong ecosystem fundamentals: Active daily users, thriving DeFi protocols, and innovative meme coin culture drive organic demand.
- Technical superiority: With throughput exceeding 50,000 TPS and average transaction costs below $0.001, Solana offers real-world usability at scale.
Moreover, unlike some newer blockchains built on unproven architectures, Solana has already passed multiple stress tests — both technical and economic — reinforcing its status as a blue-chip L1.
Frequently Asked Questions (FAQ)
Is Solana replacing Ethereum entirely?
Not necessarily. While Solana is gaining ground in performance and user growth, Ethereum still leads in total value locked (TVL), developer mindshare, and institutional backing. The two may coexist as complementary ecosystems serving different use cases.
Why is SOL/BTC considered a better trade than ETH/BTC?
Because SOL offers higher growth potential in bull markets due to its lower market cap, faster adoption curve, and superior on-chain performance. When macro conditions favor risk-on assets, SOL tends to outperform ETH on a relative basis.
What risks does Solana face going forward?
Key risks include centralization concerns (fewer validators compared to Ethereum), past network instability issues, and reliance on a concentrated set of ecosystem backers. However, ongoing upgrades aim to address these challenges.
Can Ethereum regain momentum despite L2 fragmentation?
Yes. If Ethereum successfully captures value through initiatives like protocol-owned liquidity, MEV redistribution, or native yield mechanisms, it could reverse the trend of value leakage. Additionally, the potential approval of a spot ETH ETF in 2025 could reignite investor interest.
Is now a good time to rotate from ETH to SOL?
It depends on your risk profile and investment horizon. Long-term ETH holders benefit from proven security and network effects. But for those seeking higher alpha in a bull cycle, reallocating part of an ETH portfolio to SOL could enhance returns — provided diversification is maintained.
👉 Compare high-growth blockchain assets with strong fundamentals and real-world utility.
Final Thoughts: A New Chapter in Crypto Investing
The idea that SOL could become a new benchmark asset reflects broader changes in the crypto market. Investors are no longer satisfied with slow-moving giants alone; they’re looking for platforms that combine speed, innovation, scalability, and real adoption.
While BTC remains digital gold and ETH continues to power much of Web3, Solana represents something different: a high-performance engine for mass-market blockchain applications.
As Andrew Kang suggests, persistently favoring ETH/BTC trades while ignoring the rise of SOL/BTC might indeed be the definition of crypto insanity — at least in today’s market environment.
Whether Solana fully overtakes Ethereum remains to be seen. But one thing is clear: the era of unquestioned ETH dominance may be coming to an end.
Core Keywords: Solana (SOL), Ethereum (ETH), Bitcoin (BTC), SOL/BTC, blockchain performance, Layer 1 (L1), crypto benchmark asset