Understanding Solana’s Potential
A prominent crypto analyst from InvestAnswers suggests that traders might be overlooking the potential of Solana (SOL) in the upcoming bull market. According to the analyst’s base-case thesis, SOL is expected to reach 10% of Ethereum’s (ETH) market cap during the next market expansion.
Analyzing Price Targets
Based on the presumption that Ethereum’s price peaks at $8,000 in the next bull market, the analyst theorizes that if Solana were to achieve 10% of ETH’s market cap (a threshold it has reached in the past), it would imply a $231 price target for SOL.
However, the analyst also considers the possibility of SOL reaching 20% of ETH’s market cap. If this scenario materializes, it would result in a market cap of $192 billion for SOL. Given today’s prices and the token supply, this would drive the price to $461. This projection indicates a remarkable ROI of 2,038%, constituting only approximately 5% of the total crypto market cap, making it a feasible possibility.
Past Performance and Upside Potential
The analyst points out that SOL has surpassed the 10% threshold of ETH’s market cap in the past. Referring to the SOL upside chart, the analyst highlights that the Solana price breached the 10% mark of ETH’s market cap back in October 2021.
As of the latest update, SOL is currently trading at $21.99.
