Solana is sucking blood from Ethereum! The rotation of funds is accelerating, and ultra-low fees are helping SOL dominate Q4.

The crypto assets market is undergoing a silent capital migration. According to the latest on-chain data, investors are shifting funds from Ethereum (ETH) to Solana (SOL), a trend that could redefine the market landscape in the fourth quarter of this year.

01 Capital Rotation: SOL is consuming ETH's market share

The change in capital flow is clearly visible. Since September 9, the exchange supply of Solana has decreased from 5.29% to 4.72%, indicating that a large amount of [SOL]https://www.gate.com/buy-solana-sol( is being withdrawn by investors from trading platforms for accumulation.

This means that about 9.06 million SOL (worth approximately $2.26 billion) have left the exchange, directly driving the SOL price up by 16.19% over the past week, reaching $250.

At the same time, Ethereum is facing a completely opposite situation. Nearly 20,000 coins )https://www.gate.com/buy-ethereum-eth[ETH] (approximately $72 million) have been transferred to exchanges, indicating that holders may be preparing to sell, which undermines the bullish momentum of ETH.

The SOL/ETH ratio surged by 8.66%, marking the largest weekly increase since early April, further confirming that funds are shifting towards SOL.

02 Performance Comparison: SOL Cycle Returns Exceed ETH

The price performance disparity is shocking. Until the middle of the third quarter, Ethereum still held a dominant position, achieving over 90% return on investment, pushing its market dominance to an annual high of 15%.

But now the situation has completely changed. Ethereum has fallen 8.3% from its peak, while SOL's monthly return has reached 17%, nearly 8 times that of ETH's monthly return (7%).

This disparity in performance not only reflects a shift in market sentiment but also indicates that smart money is actively repositioning its investment portfolios. According to AMBCrypto analysis, this rotation could set the tone for fund flows in the fourth quarter.

03 Cost Advantage: The ultra-low transaction costs of SOL have become a killer feature.

In addition to the flow of funds, the structural advantages of Solana cannot be ignored. Transaction fees have become a key differentiating factor.

In September, the average transaction fee for Ethereum soared to over $3, while the average fee for Bitcoin approached $1, and Solana's fee remained stable at $0.005, keeping it user-friendly.

(Source: Token Terminal)

This fee difference is being translated into actual activity. On-chain data shows that the daily token volume of SOL has increased by 135% this month to date, while ETH has only increased by 20%.

This means that the daily capital influx into Solana is almost 10 times that of Ethereum, consistent with its 17% monthly yield.

04 Adoption Outlook: Solana is Prepared for Mass Adoption

Solana's adoption is entering Wall Street. But this is not just speculative flow, as ETH still posted over 80% investment returns in the third quarter.

Solana's first layer (L1) use cases are expanding. Its ultra-low fees and high throughput make it an ideal choice for everyday transactions and micropayments, a field where Ethereum struggles to compete due to network congestion and high fees.

In fact, this divergence is translating into substantive activity. With daily traffic nearly 10 times that of Ethereum, Solana is clearly winning the favor of developers and users.

05 Market Outlook: Q4 May Become the "SOL Cycle"

With comprehensive capital rotation, ultra-low fees, and an ever-expanding L1 activity, Solana seems set to continue surpassing Ethereum.

Multiple analysts believe that the fourth quarter is likely to become the "SOL cycle." As funds continue to shift from ETH to SOL, and Solana's advantages in fees and scalability continue to attract users and developers, SOL could further expand its gains in the coming months.

However, the crypto assets market is known for its volatility, and trends can shift rapidly. Investors should closely monitor key indicators such as exchange traffic, fee markets, and on-chain activities to confirm the sustainability of this trend.

Conclusion

The competition between Solana and Ethereum has entered a new phase. With ultra-low transaction fees, strong capital inflows, and growing on-chain activity, SOL seems poised to dominate the market in the fourth quarter of this year. For investors, this capital rotation not only provides short-term trading opportunities but may also signal a long-term shift in the blockchain industry landscape. Whether Solana can maintain its momentum will fundamentally depend on its ability to continue offering a better user experience and cost efficiency than Ethereum.