A closely watched crypto analyst says traders may be underestimating Solana’s (SOL) potential in the next bull market.
In a new strategy session, the InvestAnswers host says his basic thesis for SOL is that it should reach 10% of Ethereum’s (ETH) market cap during the next market expansion.
Assuming that Ethereum will reach a top value of $8,000 in the next bull market, the analyst theorizes that if Solana were to reach 10% of ETH’s market cap, which it has already reached in the past, this would imply a $231 price target for SOL.
However, InvestAnswers says that reaching 20% of ETH’s market cap is not entirely outside the realm of possibility.
“If – as has always been part of my thesis – if Solana goes to 20% of the ETH market cap, that would take us to a $192 billion [market cap], and given current prices and the number of tokens, that would bring the price to $461, and that would be an ROI (return on investment) of 2,038%, and that would be only 5%, approximately of the crypto market cap. So it’s not outside the realm of possibility at all.
But what’s even stranger is that we have already exceeded the 10% threshold in the past.
This is the SOL upside chart… You can see here that the yellow line is the 10% of ETH market cap, and the Solana price in blue exceeded that in October 2021.”
At the time of writing, SOL is trading at $21.99.
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Featured image: Midjourney