A popular crypto strategist says that Solana (SOL) has the potential to go on a massive rally and reach a new all-time high.
In a new video update, the host of InvestAnswers tells his 444,000 YouTube subscribers that one way to gauge Solana’s current strength is to look at daily active usage (DAU) among top altcoins.
He says DAU is 572,500 for Ethereum (ETH), which is about 192,600 more daily active users than Solana’s 379,900. Solana’s DAU is above the DAU of other top altcoins.
“If we look at the daily active users of Solana versus Ethereum, you can see Solana is down a bit, 379,900, a little bit higher than Polygon 359,500 and Ethereum 572,500, which is good. But remember, Polygon can run a lot faster than Ethereum, so why [aren’t] the transactions a lot higher? Because there’s room for adoption. Cardano is in there at 49,800 which is almost the same as Near Protocol [at 49,500]. Avalanche, 34,900 and Aptos 21,500. And that’s kind of the lay of the land at the top layer-1 chains.”
He next looks at Solana’s market potential by comparing its price if it shared the same market cap as Cardano (ADA) and at different percentages of the market cap of Ethereum. He also looks at if they reach their all-time high. He takes the results and averages them to come up with a possible value for Solana at $52.61 and an all-time high price of $305.
“Assuming these other coins go back to all-time highs and assuming that Solana continues on its growth trajectory, then I believe these are possible. And this is an average of averages, which is a safe way to come at it. So, if we look at the matching Cardano market cap $29.61, 10% of ETH $42.74, 20% of ETH $85.48. The average of all three is $52.61. Is that a fair value for SOL? Absolutely yes, I believe that is the case. But it has a black eye from the FTX fallout and everything else so it’s trading at a quarter of that value right now.
Now if we go to the all-time high and compare those $351.37, $188.21, $376.42 that gives us an average of $305.33, which is more than the Solana all-time high of $259. Could Solana reach an all-time high and exceed it? I believe it’s possible if the growth continues, the adoption continues and there are no more things to kick in the teeth as we go forward.”
At time of writing, Solana is changing hands at $13.87.
IDon't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Kiran 360 Degree