A closely followed crypto analyst says that traders may be underestimating Solana’s (SOL) potential in the next bull market.
In a new strategy session, the host of InvestAnswers says that his base-case thesis for SOL is that it should reach 10% of Ethereum’s (ETH) market cap during the next market expansion.
Under the presumption that Ethereum tops out at $8,000 in the next bull market, the analyst theorizes that if Solana were to reach 10% of ETH’s market cap, which it already hit in the past, it would imply a $231 price target for SOL.
However, InvestAnswers says that SOL reaching 20% of ETH’s market cap isn’t completely out of the realm of possibility.
“If – which 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 today’s prices and the number of tokens, that would take the price to $461, and that would be an ROI (return on investment) of 2,038%, and that would only be 5%, approximately of the crypto market cap. So, it’s not beyond the realm of possibilities at all.
But what’s even more strange is we got above the 10% threshold already in the past.
This is the SOL upside chart… You can see here the yellow line is the 10% of ETH market cap, and the Solana price in blue breached that back in October 2021.”
At time of writing, SOL is trading for $21.99.
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