Solana is once again in the spotlight──Profit-taking moves with ETH, DOGE, ADA | CoinDesk JAPAN

• Following investors shifting funds from Bitcoin to other major tokens, Ethereum surpassed $3770 over the weekend.
• Solana reached a high of $203, driven by the introduction of the Block Assembly Marketplace by Jito, marking its highest price since February.
• DeFi tokens such as Uniswap and Aave have seen significant increases due to strong inflows into ETFs and an optimistic outlook on the GENIUS Act.

Ethereum (ETH) continued to rise over the weekend, temporarily surpassing $3,770 as funds moved from Bitcoin (BTC) to major tokens.

This movement continues the trend that characterized trading in July, where BTC has continued to rise gradually, while significant increases were seen in Layer 1 and decentralized finance (DeFi) tokens.

Bitcoin has been steadily trading above $117,400, having risen by over 1% in the past 24 hours. XRP, Binance Coin (BNB), Dogecoin (DOGE), and Cardano (ADA) showed mixed movements as traders took profits, while Solana (SOL) surged by 8% to reach $203, marking its highest level since late February.

The strength of SOL is attributed to the introduction of the Block Assembly Marketplace (BAM) by ecosystem player Jito, and as reported by CoinDesk, some observers point out that this has increased investor interest in SOL.

Major DeFi tokens such as Uniswap (UNI) and Aave (AAVE) have recorded a sharp rise of 20% to 30% over the past week. Jeff Mei, COO of the cryptocurrency exchange BTSE, cited strong inflows of funds into ETFs (Exchange-Traded Funds) and an optimistic outlook on the legislative bill "GENIUS Act" aimed at clarifying the regulatory framework for DeFi platforms as contributing factors.

"The ongoing rise over the weekend can be attributed to investors shifting large amounts of funds into Ethereum. While Bitcoin remains strong around $117,000, it is clear that the momentum has shifted towards Ethereum. The Ethereum spot ETF continues to see record inflows," said Mr. Mei in a comment to CoinDesk.

"As Ethereum is still trading significantly below its all-time high, traders believe that this gap will be closed in the coming months, which makes sense," Mr. Mei added. At the current price, ETH is still nearly 25% below its all-time high from 2021, which can be said to set a clear target for swing traders.

As Bitcoin shows stability near its all-time high, some fund managers are already shifting capital to Ethereum, seeing it as the next breakout candidate. The background of this optimistic view seems to be the expanding role of ETH in institutional investors' portfolios, particularly as inflows into spot ETFs in the United States are accelerating.

"With support for institutional investors' new reserve strategies, Ethereum is expected to rise again against Bitcoin. Investors are afraid of missing out on a surge in Ethereum similar to Bitcoin's skyrocketing to $120,000 this year," said Nassar Al Achkar, Chief Strategy Officer of CoinW, in a report on July 22.

On the other hand, some point out that the global market is showing early signs of a new inflation cycle. While long-term interest rates remain elevated in major economies, the break-even inflation rate (BEI), an important indicator of future price pressures, has returned to the high levels seen in recent years.

"With long-term interest rates remaining at high levels globally, inflation expectations are rising again, and as financial conditions remain loose, the BEI has returned to levels not seen in several years," said Augustine Fan, head of insights at SignalPlus, in a message on Telegram.

"The cryptocurrency industry has jumped in without ever escaping FOMO (fear of missing out). For now, it seems like good days have returned," Mr. Fan concluded.

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