A crypto currency analyst closely followed in the markets claimed that investors may be underestimating the potential of Solana, a smart contract platform, in the next bull market.
In a new strategy session, InvestAnswers host argued that the fundamental thesis for SOL is that Ethereum‘s market value should reach 10% during the next market growth. Assuming Ethereum surpasses $8,000 in the next bull market, the analyst suggests that if Solana reaches 10% of the market value Ethereum has reached in the past, this would mean a price target of $231 for SOL. However, InvestAnswers stated that it is not completely unlikely for SOL to reach 20% of Ethereum’s market value and added the following statements:
If Solana, which has always been part of my thesis, reaches 20% of ETH market value, this would take us to a market value of $192 billion, and considering today’s prices and token count, this would result in a return on investment of 2,038%, which would be approximately only 5% of the crypto market. So, it’s not beyond the realm of possibilities. But even stranger, we have exceeded the 10% threshold in the past. This is Solana’s upward chart… Here, you can see that the yellow line represents 10% of ETH market value and the blue Solana price exceeded it in October 2021.
In conclusion, the crypto currency analyst stated that Solana’s (SOL) potential is underestimated by investors. He also suggested that Ethereum’s 10% market value could indicate a price target of $231 for SOL. He emphasized that it is also possible for Solana to reach 20% of ETH, which could bring a price of $461 for SOL, highlighting that significant returns are possible for investors.
At the time of writing, Solana is trading at $21.78.