Solana (SOL) Poised to Emulate Ethereum (ETH) Performance in Upcoming Bull Run

Similarities Between Solana (SOL) and Ethereum’s (ETH) DeFi Summer

According to a recent report by on-chain analyst Delphi Digital, there are striking resemblances between Ethereum’s DeFi Summer of 2020 and the potential trajectory of Solana (SOL) in the year 2024.

“Safest Bet” on Solana (SOL) Among Non-EVM Chains

In anticipation of the upcoming bull market, Solana (SOL) is speculated to rise once again and mirror the performance exhibited by Ethereum (ETH). Prominent analyst and podcaster, Sal Qadir, shared these insights with his followers on Twitter on August 11, 2023.

Quick summary of the comprehensive report from Delphi Digital, titled “Ghosts of Cycles Past – The Early Innings of a New Cycle?”. Sal Qadir focuses on the implications for Solana (SOL) in a recent thread of tweets.

Comparing Performance and DeFi Activity

The analyst employs a four-year-cycles approach to draw parallels between the current market performance and that of Q4 2019. Additionally, with the evident surge in DeFi activity on Solana (SOL), the platform might be on the brink of its own version of Ethereum’s 2020 DeFi Summer.

Leading the Pack in DeFi Value Locked

Among all Layer 1 blockchains outside the Ethereum Virtual Machine (EVM) ecosystem, Solana (SOL) indisputably stands out as the leader in terms of total value locked within DeFi protocols.

Expanding Solana’s (SOL) Liquid Derivatives Staking Ecosystem

The potential for growth in Solana’s (SOL) liquid derivatives staking ecosystem is considerable. By analyzing the ratio between total SOL staked and the Total Value Locked (TVL) of Solana-based Liquid Staking Tokens (LSTs), Qadir anticipates the injection of “billions of capital” once liquidity providers for SOL seek additional yield.

Predictions for Solana’s (SOL) Comeback

Previous coverage on U.Today has highlighted the potential for an impressive resurgence in Solana’s (SOL) price during 2023, based on various technical analysis indicators.

Factors Driving Solana (SOL) Success

In addition to technical analysis triggers, the anticipated growth of Solana (SOL) can be attributed to several technical advancements that have been integrated into the protocol or are set to be introduced in the near future.

Next-Gen Solana DeFis and MEV Solutions

Next-generation Solana DeFis developed by Jito Labs could potentially address the issues of Miner Extractable Value (MEV) in more advanced ways compared to mainstream Ethereum-centric protocols.

Cost-Efficient NFT Minting with Data Compression Scaling

Delphi’s data indicates that thanks to data compression scaling technology, the minting of non-fungible tokens on Solana (SOL) could be nearly 3,000 times cheaper than on Polygon (MATIC).

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