Macro expert and Real Vision CEO Raoul Pal indicated that Solana $219 (SOL) could outperform Ethereum (ETH) $3,216 in the current market cycle. He also suggested that another relatively new entrant in the layer-1 sector, ranked among the top 20 by market capitalization, may have the potential to surpass both Solana and Bitcoin (BTC) $89,739.
Market Performances
Pal noted that Solana traded at $205 following a 21% increase this week. Ethereum, on the other hand, saw a 16% rise, reaching $2,949, while Bitcoin experienced a 9% increase to $76,304. SUI also climbed 17% to $2.32.
Ethereum’s Transition Beyond Bitcoin
Pal attributed Ethereum’s potential to surpass Bitcoin during this cycle to the crypto market‘s shift into a risk-taking phase. He mentioned expectations of a more conducive regulatory environment for the crypto industry following Donald Trump’s election as U.S. president.
Pal stated that the reason for Ethereum surpassing Solana lies in the significant improvements in regulations for crypto. This situation allows for the emergence of tokens that provide benefits in decentralized finance (DeFi) and enables traditional finance to utilize tested chains.
He argued that improved regulations could trigger two major developments: the initiation of yield-generating tokens within DeFi, thereby increasing network value, and a broader use of the most tested and adopted chains in traditional finance.
Pal’s predictions highlight crucial dynamics that market participants should consider. The competition among layer-1 chains and the impact of the regulatory environment on cryptocurrency adoption could shape future market movements.
In this evolving crypto landscape, the potential for sustainable growth in innovative projects will be essential, with the trust provided by regulations serving as a key factor moving forward.