Independent market analyst Hansolar believes that Solana appears ready for a bull run in the current crypto market surge led by Bitcoin. The basis of Hansolar’s bullish analogy for Solana lies in its potential to replicate Ethereum’s price trends during previous crypto market bull runs. For example, during the 2020-2021 rise cycle, Ethereum’s price soared from about $85 to $4,935, following Bitcoin‘s upward trend.
Solana Targets $600 Goal
Interestingly, as shown in the three-day chart below, after Bitcoin broke a new record above $20,000, Ethereum’s bullish trend increased by approximately 1,400%. This fractal could be repeated in 2024 if Bitcoin maintains a long bull run above its November 2021 record level of $69,000. However, as Hansolar also points out, Bitcoin refreshing its all-time high could similarly benefit Solana this time:
“Previously, Ethereum surged when Bitcoin really hit ATH levels. That’s when individual investors buy SOL. Currently, SOL is about 50% off its ATH levels, similar to Ethereum being around 50% during Bitcoin’s previous ATH cycle.”
Moreover, Bitcoin’s rise towards $150,000, a valuation anticipated by Fundstrat Research Chairman Tom Lee based on ETF approval expectations, could lead Solana to target a long-term upward goal of $600. This target is about 450% above the current SOL price.
Intense Interest in the Solana Ecosystem
Fundamentally, Solana has recently performed well in terms of network adoption, with the total value locked in its ecosystem reaching its highest level since January 2023, at 20.51 million SOL. Theoretically, as more assets are locked into DeFi platforms, the circulating supply of these tokens could decrease, potentially leading to an increase in demand relative to supply.
This scarcity effect could contribute to an increase in the price of locked tokens. Solana’s rising TVL value is seen in conjunction with the continuous quarter-over-quarter (QoQ) growth tracked by data platform Messari. Notably, the network saw a 103% increase in average daily fee payers in the 4th quarter of 2023. During the same period, the average daily DEX volume increased by 961%, and there was a 359% increase in average daily NFT volume.
In the first quarter of 2024, the airdrop event of Jupiter DEX‘s native token JUP also stimulated activity on the Solana blockchain network. Additionally, NFT volumes approaching $5 billion underscored strong demand for SOL tokens.
