Can Solana (SOL) Bounce Back? Analyst Looks at Top Ethereum Rival After Bear Market Collapse

A well-liked crypto strategist says that Solana (SOL) has the potential to go on an enormous rally and attain a brand new all-time excessive.

In a brand new video replace, the host of InvestAnswers tells his 444,000 YouTube subscribers that one solution to gauge Solana’s present energy is to look at day by day lively utilization (DAU) amongst prime altcoins.

He says DAU is 572,500 for Ethereum (ETH), which is about 192,600 extra day by day lively customers than Solana’s 379,900. Solana’s DAU is above the DAU of different prime altcoins.

“If we glance at the day by day lively customers of Solana versus Ethereum, you may see Solana is down a bit, 379,900, somewhat bit larger than Polygon 359,500 and Ethereum 572,500, which is nice. But keep in mind, Polygon can run so much sooner than Ethereum, so why [aren’t] the transactions so much larger? Because there’s room for adoption. Cardano is in there at 49,800 which is sort of the identical as Near Protocol [at 49,500]. Avalanche, 34,900 and Aptos 21,500. And that’s type of the lay of the land at the highest layer-1 chains.”

He subsequent appears at Solana’s market potential by evaluating its value if it shared the identical market cap as Cardano (ADA) and at totally different percentages of the market cap of Ethereum. He additionally appears at in the event that they attain their all-time excessive. He takes the outcomes and averages them to provide you with a attainable worth for Solana at $52.61 and an all-time excessive value of $305.

“Assuming these different cash return to all-time highs and assuming that Solana continues on its development trajectory, then I consider these are attainable. And that is a mean of averages, which is a secure solution to come at it. So, if we glance at the matching Cardano market cap $29.61, 10% of ETH $42.74, 20% of ETH $85.48. The common of all three is $52.61. Is {that a} truthful worth for SOL? Absolutely sure, I consider that’s the case. But it has a black eye from the FTX fallout and every part else so it’s buying and selling at 1 / 4 of that worth proper now.

Now if we go to the all-time excessive and examine these $351.37, $188.21, $376.42 that provides us a mean of $305.33, which is greater than the Solana all-time excessive of $259. Could Solana attain an all-time excessive and exceed it? I consider it’s attainable if the expansion continues, the adoption continues and there aren’t any extra issues to kick within the enamel as we go ahead.”

At time of writing, Solana is altering palms at $13.87.


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