Ethereum beats S&P 500 and Solana—Here’s what the $65B DeFi war signals!

• Ethereum recorded $1.7 million in Netflows, accounting for 64.52% of all bridged liquidity within 24 hours.
• The SOL/ETH chart showed repeated rejections at resistance, hinting that liquidity rotation toward ETH may continue.

Ethereum [ETH] extended its edge over Solana [SOL] as traders repositioned capital into the dominant Layer 1.

Of course, this comes amid growing faith in Ethereum’s long-term performance and DeFi exposure.

A performance review over the past month shows that ETH has outpaced SOL. At press time, ETH gained 9.32%, while SOL recorded a loss of 5.44% during the same period.

Market analysis suggested that ETH might soon attract more market liquidity, particularly from SOL, and could outperform broader market trends. These are the factors likely to drive that shift, as analyzed by AMBCrypto below.

Liquidity shift into ETH intensifies

In the past 24 hours, SOL investors have bridged a significant portion of their holdings into other ecosystems, recent analysis revealed.

At the time of reporting, Ethereum registered Netflows of $1.7 million, making up 64.52% of all bridged assets.

Naturally, this exodus implied that SOL holders are actively reallocating to ETH, seeking more resilient upside.

Source: Artemis

The trend paints a clear picture: investors appear more bullish on ETH than SOL, expecting the former to likely outperform in upcoming trading sessions.

AMBCrypto’s analysis explains why this shift has gradually begun.

DeFi sector drives growth

Sector-wise, we can observe that over the past seven days, Decentralized Finance (DeFi) services continue to grow and, in fact, lead other sectors.

Presently, the sector has risen by 12.5%, while the Ethereum ecosystem recorded a 5.9% gain during this period.

Source: Artemis

DeFi services are a core component of the Ethereum ecosystem, which has a Total Value Locked (TVL) of $65.77 billion.

This makes ETH the most valuable ecosystem by TVL.

A comparison shows that ETH’s recent market movement has outperformed the traditional market in terms of gains.

Over 12 months, Ethereum recorded a 21% return, beating the S&P 500’s 13.7%.

Source: Artemis

In fact, this outperformance strengthens ETH’s appeal among traditional investors hunting for risk-adjusted growth.

On top of that, Ethereum’s DeFi foundations may be driving this divergence.

Will ETH maintain market dominance?

Chart analysis of SOL/ETH shows that ETH is likely to gain more dominance over SOL, as it continues to attract investor liquidity.

Currently, the SOL/ETH chart has reached a fractal point in the market, trading into a key descending resistance line that has sparked declines on four different occasions.

Source: TradingView

Each time this resistance has triggered a pullback, it has signaled that buyers are swapping their SOL for ETH. Finally, the chart suggests that this liquidity attraction may be just beginning.