Solana
Expert estimates SOL will reach 50% of ETH market cap this cycle
Solana (SOL), the fifth-largest cryptocurrency in the sector, saw a notable resurgence over the weekend, in line with the broader market recovery and growth of Bitcoin (BTC). rebound towards $63,000 score for the first time in over a week.
SOL price has successfully recovered from the losses of the past few months, surpassing the $150 level and overcoming major resistance walls, coupled with an optimistic statement from Daniel Cheung, co-founder of hedge fund Syncracy Capital, who believes that SOL is exhibiting similar fractal patterns reminiscent of Q3 2021, potentially leading to explosive gains.
SOL will win again
In a social media post On Sunday, Cheung expressed his bullish outlook on SOL’s price action as the token closed last week on a bullish note, also drawing comparisons to the third quarter of 2021, from which SOL’s price began its rise from a low of $27 in late July that year, eventually reaching its current all-time high of $259 in November 2021.
Cheung also drew parallels with the fourth quarter of 2020, noting that in both cases the most significant returns are imminent, suggesting that new price increase are on the agenda in the last half of the year, as was the case in 2021.
Cheung further highlighted that Solana is likely to remain a hub for on-chain activity throughout the remainder of this market cycle due to its accessibility to retail investors, making it an attractive asset.
The potential introduction of a Solana exchange traded fund (ETF), which is expected to have a substantial impact on SOL’s price, coupled with the increasing likelihood of Trump’s re-election, serves as additional fuel for the Solana ecosystem, said the Syncracy Capital co-founder.
Solana Market Cap Projection
In an interesting observation, Daniel Cheung also said that he believes the Solana ecosystem could “probably” reach 50% of Ethereum’s market cap this cycle as optimism around the blockchain grows.
Currently, Solana has a market cap of $71 billion, significantly lower than Ethereum’s $403 billion. Yet, according to Cheung’s analysis, if SOL were to reach 50% Ethereum Market CapIts market capitalization would reach a staggering $280 billion, triggering an exponential rise in SOL’s price and pushing it to new all-time highs.
It remains to be seen whether the latter scenario will come to pass, with expectations of a more favorable regulatory framework in the United States, the possibility of new legislation for the industry with a Trump victory in the November elections and the potential approval of the long-awaited Solana project. ETF Market.
Nonetheless, Solana is trading at $152 at the time of writing, up over 6% in a 24-hour period and 438% year-to-date.
Featured image of DALL-E, chart from TradingView.com