Is Solana SOL the Next Ethereum? Analyst Predicts $600 Price Target

Solana (SOL) has experienced a huge surge in price and activity popularity in recent weeks. This morning, SOL broke above the $200 mark for the first time since December 2021, reaching a high of $205.

TLDR

• Solana (SOL) price broke above $200 for the first time since December 2021, reaching $205.
• The term “Solana” hit a 5-year high of 100 on Google Trends, surpassing the previous high of 84 in September 2021.
• Solana has overtaken BNB as the fourth-largest cryptocurrency with a market cap of over $89 billion.
• Independent analyst Hansolar predicts Solana’s price could reach $600, citing similarities to Ethereum’s 2020-2021 surge.
• Solana’s total-value-locked (TVL) has reached 20.51 million SOL, its highest level since January 2023, and its 24-hour transaction volume surpassed Ethereum’s.

This price surge coincides with a notable increase in the search term “Solana” on Google Trends, which hit a 5-year high of 100, surpassing the previous high of 84 recorded in September 2021.

Solana’s market capitalization has also seen substantial growth, allowing it to overtake Binance Coin (BNB) as the fourth-largest cryptocurrency, with a market cap exceeding $89 billion.

The recent rally in SOL’s price can be attributed to several factors, including gains in the overall cryptocurrency market and the growing adoption of the Solana blockchain.

Dubbed the “Ethereum Killer,” Solana offers a faster, more scalable, and cost-effective alternative to other layer-1 blockchains, including Ethereum.

Independent analyst Hansolar has sparked optimism within the Solana community, suggesting that SOL could potentially repeat Ethereum’s remarkable price surge witnessed during the 2020-2021 bull market.

When SOL takeoff?

✦ SOL
Assuming SOL is the new ETH this cycle, I think SOL really takes off later than BTC and ETH.

Previously ETH took off when BTC actually broke out into ATHs.
It’s then when retail buys into SOL as the high beta catch up play.

Currently SOL is at around… pic.twitter.com/mwyhJ5DO6m

— hansolar (@hansolar21) February 28, 2024

Ethereum’s price rose from around $85 to $4,935 during this period, representing an increase of approximately 1,400%.

Hansolar believes that Solana could benefit similarly from Bitcoin’s ongoing bull run, which is expected to surpass its previous all-time high of $69,000 reached in November 2021.

The fundamentals of the Solana ecosystem also indicate a promising outlook, with the total-value-locked (TVL) across its network reaching 20.51 million SOL, its highest level since January 2023.

Moreover, Solana has surpassed Ethereum and other Ethereum Virtual Machine (EVM)-based Layer-2 solutions in terms of 24-hour transaction volume, with Solana processing $3.654 billion compared to Ethereum’s $2.397 billion.

As SOL breaks above the $200 level, technical analysis suggests that the next target could be around $257, supported by a bullish continuation pattern on its daily chart.

With the growing popularity and adoption of the Solana blockchain, combined with the overall positive sentiment in the cryptocurrency market, investors and enthusiasts are closely monitoring SOL’s price action to see if it can maintain its upward trajectory and potentially reach new all-time highs in the coming months.