Is Ethereum about to explode? Analysts: ETH/BTC has bottomed out, Solana’s fight against meme culture is collapsing

After the Trump team issued $TRUMP, Trump’s wife’s $MELANIA and the Central African President’s $CAR were also launched one after another. Now the most controversial is the Argentine President’s $LIBRA, which seems to have become the fuse that crushed the hype of meme coins.

As more and more meme coins become profit tools for insider traders and rat traders, scandals in the meme coin market continue to intensify, and the price trend generally shows a surge followed by a collapse, and the market hype enthusiasm begins to cool down. This trend is also reflected in the price of Solana (SOL), the meme coin base camp.

SOL drops to $174

According to Binance spot data, SOL fell from $186.94 last night to a low of $174.63, and rebounded slightly to $178.05 before press time. It fell 4.4% in the past 24 hours, making it the worst performing token among the top 30 currencies by market value.

Trader Tyler tweeted that "the market is unleashing anger on Solana." He cited data from Binance perpetual contracts and pointed out that the ratio of short orders to long orders has risen to 4:1, reflecting the market's significantly high bearish sentiment towards Solana.

Who harvested the Solana meme coin market?

The Solana memecoin market has been "squeezed" out of billions of dollars by various institutions, trading robots, and insiders.

According to statistics from 0xngmi, founder of DeFiLlama, the total amount of revenue obtained by different participants from the Solana meme coin market is as follows:

• Trading robots and applications: $1.09 billion

• Pump.fun platform: $492 million

• MEV (Maximum Extractable Value): $1.5-2 billion

• Trump-related insiders: $500 million to $1 billion

• Other insiders: Unknown

• AMMs (Automated Market Makers): $0-2 billion

He said the total was more than $3.6 billion to $6.6 billion. This also reflects the highly speculative nature of the memecoin market, with many gains not enjoyed by ordinary investors but captured by high-frequency traders, arbitrageurs and insiders.

Analyst: ETH/BTC may have bottomed out

As Solana suffered a blow due to meme coins, the market seems to have begun to turn its attention to Ethereum. Zhu Su, founder of Three Arrows Capital (3AC), tweeted yesterday that it is time to buy all of Ethereum.

Aran Hawker, CEO of trading automation platform CoinPanel, told CoinDesk that Ethereum’s recent rise was not a true overperformance, but more like a return to normal prices. He further stated: Some traders may transfer funds from SOL back to ETH, but the market trend and structure have not changed significantly. If this wave of rise encounters a major market change, it is likely to be quickly wiped out.

However, Joel Kruger, market strategist at LMAX Group, is more optimistic, believing that this may be a signal that ETH's years-long depreciation trend against BTC is about to end. He said: The ETH to BTC ratio has continued to fall since 2021, but it may be bottoming out now. We should keep a close eye on the monthly high of ETH/BTC. If it is successfully broken, it will strengthen the possibility of a trend reversal.

As of press time, the ETH/BTC ratio was temporarily reported at 0.0282, down 1.78% in the past 24 hours, and is at its lowest point since the end of 2020.

In addition, according to CoinGlass data, the market's interest in ETH increased significantly yesterday (17), with the total amount of futures open interest growing by 12% in 24 hours to approximately US$2.6 billion, mainly from Binance and Gate.io, while BTC futures open interest only grew by 1%, indicating that funds are flowing into ETH.

However, as of press time, Ethereum has fallen from yesterday's $2,849.7 to $2,703.91, with a cumulative decline of more than 5%. The future price trend of Ethereum still needs to be closely monitored.