A carefully adopted crypto analyst says that merchants could also be underestimating Solana’s (SOL) potential within the subsequent bull market.
In a brand new technique session, the host of InvestAnswers says that his base-case thesis for SOL is that it ought to attain 10% of Ethereum’s (ETH) market cap in the course of the subsequent market enlargement.
Beneath the presumption that Ethereum tops out at $8,000 within the subsequent bull market, the analyst theorizes that if Solana had been to achieve 10% of ETH’s market cap, which it already hit up to now, it could indicate a $231 worth goal for SOL.
Nonetheless, InvestAnswers says that SOL reaching 20% of ETH’s market cap isn’t utterly out of the realm of risk.
“If – which has at all times been a part of my thesis – if Solana goes to twenty% of the ETH market cap, that might take us to a $192 billion [market cap], and, given in the present day’s costs and the variety of tokens, that might take the worth to $461, and that might be an ROI (return on funding) of two,038%, and that might solely be 5%, roughly of the crypto market cap. So, it’s not past the realm of prospects in any respect.
However what’s much more unusual is we obtained above the ten% threshold already up to now.
That is the SOL upside chart… You’ll be able to see right here the yellow line is the ten% of ETH market cap, and the Solana worth in blue breached that again in October 2021.”
At time of writing, SOL is buying and selling for $21.99.
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