A closely followed crypto analyst says that traders may be underestimating Solana’s (SOL) potential in the next bull market.
In a new strategy session, the host of InvestAnswers says that his base-case thesis for SOL is that it should reach 10% of Ethereum’s (ETH) market cap during the next market expansion.
Under the presumption that Ethereum tops out at $8,000 in the next bull market, the analyst theorizes that if Solana were to reach 10% of ETH’s market cap, which it already hit in the past, it would imply a $231 price target for SOL.
However, InvestAnswers says that SOL reaching 20% of ETH’s market cap isn’t completely out of the realm of possibility.
“If – which has always been part of my thesis – if Solana goes to 20% of the ETH market cap, that would take us to a $192 billion [market cap], and, given today’s prices and the number of tokens, that would take the price to $461, and that would be an ROI (return on investment) of 2,038%, and that would only be 5%, approximately of the crypto market cap. So, it’s not beyond the realm of possibilities at all.
But what’s even more strange is we got above the 10% threshold already in the past.
This is the SOL upside chart… You can see here the yellow line is the 10% of ETH market cap, and the Solana price in blue breached that back in October 2021.”
At time of writing, SOL is trading for $21.99.
I
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxCheck Price Action
Follow us on X, 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 losses 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: Midjourney
