A popular crypto analyst is setting long-term price targets for an Ethereum (ETH) competitor based on optimistic predictions about ETH’s future.
In a new strategy session, the host of financial education YouTube channel InvestAnswers first shares with his 410,000 subscribers an Ethereum chart from Coinstack’s Ryan Allis.
The chart plots out significant rises in valuation for the leading smart contract platform over the coming decade, beginning particularly in 2025.
The InvestAnswers host says,
“It’s pretty staggering, even short-term targets like December 2022 at $12,581… and on and on up to 2025 where it could be worth $100,000.”
Allis states his ETH prediction model is based on his belief that “all assets have an intrinsic price that is derived from their utility and their cash flows,” and he expects ETH’s cash flows to increase in the coming years.
The InvestAnswers host next moves on to discuss how predicting the future valuation of layer-1 blockchain protocol Solana (SOL) is intrinsically linked to Ethereum’s price action.
“I do believe that if Ethereum is worth these numbers, Solana or any layer-1 one should be worth at least 20% of that market cap.
I pulled in some numbers and took the Ethereum price target based on these models, took the Ethereum supply which is going deflationary, so I estimate that by about December 30 we’ll have about 110 million ETH versus 119 million today.
Then I calculate the market cap, it’d be $1.5 trillion if ETH goes to $12,500, which is about 1.5x the Bitcoin market cap. And then I calculated SOL, 20% of that market cap over all the different years and divided by the SOL supply, which of course is a little bit inflationary going up 9.6% per year.
That gives us some Solana price targets, which are different from mine.”
The analyst specifies that while Solana is currently worth around 10% of Ethereum’s trading price, should ETH meet the levels forecast above then SOL’s fair market value would double in relation to ETH.
“That would give us a price target in December of this year at about $935. Yes, that’s a big hopium number, that’d be like a 9x from where we are today.
I don’t expect it, but if these numbers are right for Ethereum, this is where possibly, theoretically Solana price could go.”
The YouTube host concludes by saying he believes in the Solana ecosystem despite certain growing pains it has experienced.
“Solana, despite its bugs and 17-hour outage in September, it is better than ETH 2.0 was planned to be.”
At time of writing, Solana is down 5% on the day and trading for $102.08, while Ethereum has dropped by 3.07% to $3,025 over the same period.
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