The latest developments have showcased Solana [SOL] asserting its dominance with a significant uptick in price and social influence, while Arbitrum [ARB] and other Layer 2 assets have experienced notable declines in both social activity and price performance.
This has resulted in a stark contrast between these two blockchain ecosystems.
Solana vs. Arbitrum: Divergent Social Metrics
Recent data from Santiment revealed distinct trends in the social volume of Solana and Arbitrum. Solana witnessed a remarkable surge in social interactions, with spikes exceeding 3% occurring twice this week.
On October 13, social volume peaked at 3.8%, followed by another spike of 3.6% on October 17.
This surge indicates that SOL captured over 3% of the overall cryptocurrency conversations during the week.
However, Solana’s social volume has slightly dipped to around 2.7% at present.
In contrast, Arbitrum’s social engagement remained relatively subdued. While there were intermittent spikes, the highest recorded was 1.4% on the same day when Solana hit 3.8%.
Currently, Arbitrum’s social prominence has dwindled further to approximately 0.09%.
Analyzing Solana and Arbitrum’s Price Trends
An examination of the daily price charts shows that Solana has been on an upward trajectory in recent weeks. This week, SOL surged to a peak of $163.14, marking a 5.86% increase from its recent low.
As of now, the price is above the 50-day Moving Average (MA) of $142.25 and the 200-day MA of $150.71, indicating bullish trends in the short and long term for the altcoin.
Furthermore, SOL’s breach of these significant moving averages, coupled with a neutral Relative Strength Index (RSI), suggests the potential for further upward movement.
Conversely, Arbitrum has shown limited upward momentum, consolidating within a narrow range in recent weeks. It remains below its 50-day MA of $0.5497 and 200-day MA of $0.8111, indicating a bearish outlook in the medium term.
Moreover, the 200-day MA significantly exceeds the current price, while the 50-day MA is just slightly above it.
Future Prospects for SOL and ARB
During this week, Solana has exhibited stronger market positioning compared to Arbitrum. The altcoin’s breach of key moving averages and its RSI nearing overbought levels suggest a buyer-dominated market, potentially paving the way for a continued uptrend.
In contrast, Arbitrum remains in a consolidation phase. While it shows signs of recovery, it lacks the bullish momentum seen in Solana.
For ARB to attract more buyers and signal stronger movement, it will need to surpass its 50-day MA.
Considering Arbitrum’s lower social attention, there may be potential for higher returns if it undergoes a notable price increase. Traders often shift focus to lesser-known assets like ARB after major coins like SOL have experienced significant gains, potentially triggering a price surge.