Cite This Comparison
"Ethereum vs Solana (ETH vs SOL): Returns, Risk & Volatility (2024)." Gale Finance, December 31, 2024. https://www.gale.finance/compare/eth-vs-sol-2024 Free to use with attribution. Please link back to this page or gale.finance.
Analysis period: 2024-01-01 to 2024-12-31
Relative Performance of ETH vs SOL (Normalized to 100)
Normalized to 100 at start date for comparison
Key Takeaways
- Total Return: ETH delivered a +47.4% total return, while SOL returned +88.2% over the same period. SOL outperformed on total returns.
- Risk-Adjusted Return (Sharpe Ratio): SOL had a higher Sharpe (1.12 vs 0.85), indicating better risk-adjusted performance.
- Volatility (Annualized): SOL was more volatile, with 82.1% annualized volatility, versus 64.7% for ETH.
- Maximum Drawdown: SOL's maximum drawdown was -38.4%, while ETH experienced a deeper drawdown of -45.4%.
Ethereum vs Solana Correlation
Ethereum and Solana were strongly correlated in 2024. With a correlation of 0.70, these assets tended to move together, limiting diversification benefits.
For portfolio construction, this strong correlation means holding both ETH and SOL provides limited risk reduction — they're likely to decline together in downturns.
| Metric | Metric | Value |
|---|---|---|
| Current (30-day) | 0.67 | |
| Average (full period) | 0.70 | |
| Minimum | 0.14 | |
| Maximum | 0.88 |
Correlation measures how closely two assets move together. Values near +1 indicate strong co-movement, near 0 indicates independence, and negative values indicate inverse movement.
Investment Comparison
If you invested $10,000 in each asset on January 1, 2024:
Difference: $4,084.082 (SOL ahead)
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Ethereum and Solana: Risk Analysis
Ethereum experienced its maximum drawdown of -45.4% from 2024-03-12 to 2024-09-07. It has not yet recovered to its previous peak.
Solana experienced its maximum drawdown of -38.4% from 2024-04-01 to 2024-09-07. It has not yet recovered to its previous peak.
Smaller drawdowns and faster recoveries indicate lower downside risk and greater resilience during market stress.
Sharpe Ratio of ETH and SOL
Sharpe ratio measures return per unit of risk (volatility). A higher Sharpe indicates better risk-adjusted performance. SOL had a higher Sharpe (1.12 vs 0.85), indicating better risk-adjusted performance.
A Sharpe above 1.0 is generally considered good, above 2.0 is excellent. Negative Sharpe means the asset underperformed the risk-free rate. Calculated on each asset's full 365-day lookback of available prices and annualized using the asset calendar (365 for crypto, 252 trading days for equities/ETFs/metals).
Sortino Ratio of ETH and SOL
Sortino ratio measures return per unit of downside risk. Unlike Sharpe, it only penalizes negative volatility. SOL had better downside-adjusted returns.
A higher Sortino is better. It's particularly useful for assets with asymmetric volatility (big gains, smaller losses). Downside volatility: ETH 39.8% vs SOL 48.0%. Calculated on each asset's full 365-day lookback of available prices and annualized using the asset calendar (365 for crypto, 252 trading days for equities/ETFs/metals).
Full Comparison of Ethereum vs. Solana (2024)
| Metric | ETH | SOL |
|---|---|---|
| Total Return | +47.4% | +88.2% |
| Annualized Volatility | 64.7% | 82.1% |
| Sharpe Ratio | 0.85 | 1.12 |
| Sortino Ratio | 1.38 | 1.92 |
| Max Drawdown | -45.4% | -38.4% |
| Avg Correlation to S&P 500 | N/A | N/A |
Ethereum vs Solana: Frequently Asked Questions
Which had higher volatility: ETH or SOL?
SOL showed higher volatility at 82.1% annualized, compared to 64.7% for ETH During 2024. Higher volatility meant larger price swings in both directions.
Did ETH provide diversification when held with SOL?
ETH and SOL were strongly correlated in 2024, with an average correlation of 0.70. This strong correlation limited diversification benefits.
Which had better risk-adjusted returns: ETH or SOL?
SOL showed better risk-adjusted performance with a Sharpe ratio of 1.12 versus ETH's 0.85 During 2024.
Could ETH and SOL have been combined in a portfolio?
Yes, though allocation sizing mattered. Their strong correlation provided limited risk reduction since they tended to move together. SOL's higher volatility (82.1%) meant even small allocations can materially impact overall portfolio risk.