Solana (SOL), a promising competitor to Ethereum (ETH), has caught the attention of cryptocurrency enthusiasts lately, and many are labeling it as an ‘undervalued asset’.
In a recent video update, InvestAnswers, a renowned crypto analyst, shed light on Solana’s potential by highlighting its impressive transaction volume and growing user activity. Despite these positive indicators, SOL’s current market cap remains a fraction of Ethereum’s value.
Why the disparity? When and will Solana ever explode? Read on!
Solana’s Strong Fundamentals
InvestAnswers draws attention to the notable number of daily active addresses on the Solana network, which rivals that of Ethereum. Additionally, Solana’s network is characterized by high user engagement and a wide array of decentralized applications (DApps). Despite these robust fundamentals, SOL’s market cap currently stands at only 1/25th of Ethereum’s market cap. This valuation disparity is perplexing to the analyst and highlights the potential irrationality of the market.
The analyst further contends that Solana’s market cap should be at least 1/10th that of Ethereum’s market cap. With Ethereum’s market cap hovering around $227.5 billion, reaching this suggested valuation would entail a significant 3X pump for Solana.
At present, Solana’s market cap stands at $8.1 billion, presenting an intriguing opportunity for potential growth.
Will Solana break the critical $30 threshold?
After examining the trading pattern, he acknowledges the absence of clear trading between Solana and Ethereum, primarily due to Solana’s recent struggles, including the FTX debacle. This has negatively impacted Solana’s performance against Ethereum in the past year. To break out of this downward trend, Solana would need to surpass the critical $30 threshold. Achieving this milestone could trigger a positive momentum shift and potentially propel it’s price upwards.
Also Read: Solana (SOL) Price Poised for Meteoric Rise, Predicts Raoul Pal – Coinpedia Fintech News
SOL Current Status and Warning
At the time of writing, SOL is trading at $20.57, experiencing a marginal decline of over 1% within the past 24 hours. As the 11th-largest cryptocurrency by market cap, it remains an asset that demands attention.
Could Solana be your ticker to the next big crypto breakthrough? Only time will tell- but are you ready to ride the wave?
Source: https://coinpedia.org/altcoin/can-solana-sol-outshine-ethereum-eth-expert-weighs-in/