Solana (SOL), the industry’s fifth-largest cryptocurrency, saw a notable rebound this weekend, in line with the broader market rally and Bitcoin’s (BTC) surge. recovery towards $63,000 for the first time in over a week.
The price of SOL has successfully recovered from the losses of recent months, breaching the USD 150 level and overcoming major resistance walls, coupled with an optimistic statement from Daniel Cheung, co-founder of the hedge fund Syncracy Capital, who believes that SOL shows similar results. fractal patterns reminiscent of the third quarter of 2021 and potentially leading to explosive profits.
More wins ahead for SOL
In a social media message on Sunday, Cheung expressed his bullish perspective 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 started to rise from a low of $27 at the close of the month. In July of that year, it finally reached its current all-time high of $259 in November 2021.
Cheung also drew parallels with the fourth quarter of 2020, highlighting that in both cases key returns are just around the corner, suggesting further prize winnings are on the agenda for the last half of the year, just like in 2021.
Related reading
Cheung further highlighted that Solana is expected to remain a hub for on-chain activity for the remainder of this market cycle due to its accessibility to retail investors, making it an attractive asset.
The possible introduction of a Solana exchange rate 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, according to the co-founder of Syncracy Capital.
Projection of Solana’s market capitalization
In an interesting observation, Daniel Cheung also stated that he believes the Solana ecosystem can “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. Still, according to Cheung’s analysis, if SOL were to reach 50% of Ethereum’s market capitalizationthe market cap would reach a staggering $280 billion, triggering an exponential rise in the price of SOL and pushing it to new all-time highs.
Related reading
It remains to be seen whether this latter scenario will become reality, with expectations of a more favorable regulatory framework in the US, with the potential for new legislation for the sector with a Trump victory in the November elections and the possible approval of the expected Solana project. ETF market.
Nevertheless, at the time of writing, Solana is trading at $152, up more than 6% in a 24-hour period and a significant increase of 438% since the beginning of the year.
Featured image of DALL-E, chart from TradingView.com
