Key Takeaways
- Altcoin momentum builds as $630B flows in, Bitcoin dominance rejects 66%. Solana and Ethereum lead capital rotation, but ETH outperforms SOL in Q2, signaling a shifting narrative in market strength.
The altcoin market feels like it’s on the edge of something big.
Just this past week, approximately $630 billion has moved into alts, right as Bitcoin dominance (BTC.D) rejected sharply off the 66% resistance, highlighting a level last seen in 2021.
In fact, several high-cap alt/BTC pairs are rebounding off multi-month support zones. Among the contenders, Solana [SOL] and Ethereum [ETH] are at the front and center of this emerging structural shift.
SOL/ETH reversal in play as capital rotates in
Q2 highlighted just how critical inter-asset ratios are in assessing altcoin performance relative to Bitcoin. And nothing showed that better than the SOL/ETH ratio.
The ratio opened April with a sharp 30% rally, peaking at 0.088 by mid-month, reflecting Solana’s early dominance in Q2.
However, that momentum quickly reversed. By the end of June, SOL/ETH had retraced to 0.056, marking its second-lowest level this year, and reflecting a clear shift in market strength back to Ethereum.
In fact, the technical divergence was just as clear in performance. Solana ended Q2 with a 20% ROI, while Ethereum delivered a stronger 36.48%, reinforcing ETH’s relative strength as capital rotated away from SOL.
Source: TradingView (SOL/ETH)
However, that divergence may be reaching a critical turning point.
As macro headwinds pressure Bitcoin’s market share, capital rotation into altcoins is accelerating.
Crucially, the SOL/ETH ratio was sitting on key historical support, at press time. A confirmed rebound here could validate a trend reversal in Solana’s favor, positioning it as a top contender to watch this quarter.
Is Solana poised to flip the Ethereum narrative?
According to Glassnode, Solana saw $8.3 billion in new inflows over the past week, outpacing Ethereum’s $6.2 billion. Yet, price action diverges from capital rotation trends.
On the weekly timeframe, ETH has rallied nearly 7%, breaking decisively above the $2,600 resistance. In contrast, SOL has posted a modest 2.6% gain, slipping into consolidation after a failed breakout attempt near the $160 level.
In fact, the SOL/ETH ratio has also broken down, failing to hold the 0.06 resistance, reinforcing the idea that capital is rotating back into Ethereum early in Q3.
Source: TradingView (ETH/USDT)
Crucially, Ethereum’s price structure reflects this resilience.
After Bitcoin’s all-time high on the 23rd of May triggered broad market pressure, Solana retraced 24% from its Q2 peak at $187, printing three consecutive lower lows and bottoming at $141 by late June.
Ethereum, in contrast, saw just a shallow 3% pullback before rebounding to a quarterly high of $2,878—A move that confirmed its underlying bid strength and sustained investor confidence.
Therefore, with this structural edge in play, Solana may face an uphill battle reclaiming ground against Ethereum in Q3.
