Can Solana Price Rally to $778 as App Revenue Rises Against Ethereum?

Solana has generated $18.01 million in app revenue daily while Ethereum has only made $3.54 million in the same period. This is a change from earlier trends because Ethereum has usually been the dominant in network fees and application revenues. Can Solana price take advantage of this?

Data shows that the Solana ecosystem is expanding, taking into account the usage of the network and transaction frequency.

Consequently, the revenue increase comes at a time when Solana is still drawing more developers and users because of cheap transaction fees and fast network speeds. Decentralized applications (dApps) on Solana have been on the rise recently and have outperformed Ethereum in several aspects.

Solana’s Market Cap Remains Below Ethereum

Despite generating higher revenue from apps than Ethereum, Solana has a much lower market capitalization. At the moment, Solana has a market capitalization of $113.50 billion, while Ethereum has $378.64 billion. This gap shows that, even though Solana is experiencing increased adoption and revenue, it has not scaled up to the valuation of Ethereum.

Subsequently, this implies that the market is yet to fully factor in Solana’s rising network usage compared to Ethereum given that Solana is cheaper. Large investors and market researchers are tracking the evolution of the blockchain.

Additionally, some believe that its increasing number of users may lead to the reassessment of its valuation soon. This means that Solana’s position in the competitive blockchain market is likely to change in the future depending on the future demand.

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Solana Price Could Surge 3.34x

More so, given that the market capitalization of Ethereum is $378.64 billion, it means that Solana has to surge 3.34x to reach Ethereum valuation. As of now, Solana is worth around $234, and if Solana were to have a valuation as high as Ethereum, Solana could be worth an estimated $778. This projection is based on market capitalization parity and not on speculative price fluctuation.

Furthermore, Solana price can rise based on the adoption rate, network expansion, and the ongoing interest of developers in the platform. Hence, if Solana continues to perform well in terms of application revenue and transaction volume, market participants may have to rethink the current price.

Nevertheless, the timing and likelihood of such price change are still dependent on market factors and overall investor perception.

Solana Price Analysis

At press time, Solana price is trading at $234, and if Solana is to have a valuation as high as Ethereum then Solana could be worth $778. This projection is based on market capitalization and not based on speculative price changes.

If the price holds above the $230 level, a retracement toward the $250 level is possible. However, a lower low below this level could take the price towards the next big support near $200. If the price breaks out above $250, it would pave the way to the $300 mark. The RSI is at 43, which suggests that the pressure is neutral to bearish.

The future price direction of the Solana token will be determined by the market and the interest that institutions will have in it.