The well-known crypto analyst recently took interest in Solana (SOL), a popular altcoin listed among the top ten cryptocurrencies. He asserts that its price is currently far too low and needs to surge by over three-fold. But why has the price of this popular altcoin fallen so significantly, and what is the reason behind a 300% price expectation?
Should You Buy Solana (SOL)?
Solana’s price plummeted to $8 due to the loss of FTX support and institutional sell-offs. However, the price rebounded, exceeding $20 following Vitalik Buterin’s comment that “it has freed itself from institutions, which is good.”
The popular crypto commentator made an even more optimistic forecast regarding Solana. In a recent update, the anonymous host of InvestAnswers noted that the number of active daily addresses on Solana rivals that of Ethereum, but its market value is only about 1/25th of Ethereum’s.
“Solana is processing much more transactions. The individuals active on the network are indeed more active, and the scope of DApps (decentralized applications) is broader. It’s baffling and mind-blowing, but markets can sometimes be irrational,” he said.
The analyst asserts that Solana should be worth at least 1/10th of Ethereum’s market value. However, he overlooks massive unlocking events set for 2025 and the issues arising from the liquidity exiting the network. The TVL (Total Value Locked) has significantly dropped, and Solana faces strong competitors, just as Ethereum does. Powerful rivals such as Aptos and SUI have emerged in just the past year, causing investors considering SOL Coin to have doubts about the future.
How Much Should Solana Be Worth?
At the time of writing, Ethereum’s market value is hovering around $227.5 billion, so 1/10th of that would be around $22.75 billion. Solana’s market value currently stands at $8.1 billion, meaning it would need approximately a three-fold jump to reach 1/10th of Ethereum’s market value.
“It’s tough to say exactly where this might go because there isn’t a solid trading model between the two. As I mentioned earlier, SOL is losing ground to ETH due to things like the FTX fiasco. It’s just going poorly. It needs to break out, and that means it needs to exceed $30,” he stated.
If his prediction turns out to be accurate, the SOL Coin price might provide an attractive buying opportunity below $60. However, nobody can prove whether he is making such an audacious prediction because he has acquired a substantial amount of SOL Coin. Therefore, it’s crucial to scrutinize popular analysts’ comments and question whether their viewpoints are impartial.
