As Ethereum (ETH) faces challenges in maintaining its recovery momentum, rival cryptocurrencies like Solana (SOL), Cardano (ADA), and SUI are gradually gaining traction. In August, Ethereum’s price dropped from $3,242 to $2,642, marking a 20% decline. With recession fears still looming over broader markets, major assets such as Bitcoin and Ethereum could be at risk of further declines.
Ethereum’s Underperformance in Q3
According to data from Coinglass Analytics, Ethereum’s historical performance in the third quarter has been lackluster, with an average growth of just +1.06% since 2016. This trend suggests that ETH could continue to experience a prolonged correction or remain in a sideways trend until the end of September. While Ethereum typically shows stronger performance in Q1 and Q2, with average returns of +92.75% and +66.84%, respectively, the current quarter has been a challenging period for the cryptocurrency.
The fourth quarter, however, has historically shown an average growth of +23.9%, which could present a buying opportunity for investors as ETH continues to correct. Meanwhile, Ethereum’s competitors are capitalizing on its struggles, offering investors alternative opportunities for growth.
Solana (SOL)
Solana, often referred to as an “Ethereum killer,” is a high-performance layer 1 blockchain that has managed to maintain steady price action over the past four months, despite the broader market correction. Solana’s stability is largely due to its growing popularity among major asset management companies, which are considering SOL for the next Exchange Traded Fund (ETF) in the U.S. market. Additionally, Solana’s Total Value Locked (TVL) on its network has surged from $3.8 billion to $5 billion, a 31.5% increase, indicating rising investor confidence and increased activity on the network.
With continued buying interest, Solana’s price is predicted to grow by 27%, potentially reaching $180.
Cardano (ADA)
Cardano is a blockchain platform known for its focus on sustainability, scalability, and interoperability. The ADA community is anticipating the upcoming Chang Hardfork, with over 70% of Cardano nodes already upgraded to version 9.31.0. This update is expected to enhance the network’s decentralization and introduce a new constitution for more autonomous governance.
On-chain data from Santiment shows a -2.85 Market Value to Realized Value (MVRV) ratio over the last 30 days, indicating that recent investors are currently experiencing losses. This situation often leads to weaker hands exiting the market, allowing experienced investors to accumulate ADA at a discount and potentially drive a price recovery.
With a market cap of $12.4 billion and trading at $0.34, Cardano is poised for a potential reversal that could lift its price to $0.40, representing a 22% gain.
SUI
SUI is a next-generation blockchain platform designed for high scalability and low-latency transactions. Among Ethereum rivals, SUI has recently attracted significant attention, with its price rising dramatically from $0.46 to $0.87, a 90% increase. This growth is linked to the recent launch of Grayscale’s SUI Trust fund and a sharp increase in open interest, which soared from $51.74 million to $192 million, reflecting a 271% growth.
The rise in open interest suggests increased trading activity and potential for further price movement. If the bullish momentum continues, SUI’s price could rally by 65%, targeting $1.45.
Conclusion
As Ethereum struggles in Q3, rival cryptocurrencies like Solana, Cardano, and SUI are gaining momentum, offering investors alternative opportunities for growth. With each of these projects showing strong potential, they present compelling options for those looking to diversify their portfolios and capitalize on the evolving cryptocurrency market.
