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According to Ryan McMillin, Chief Investment Officer of cryptocurrency fund manager Merkle Tree Capital, Solana is predicted to rise to $400 during the US elections in November, riding on the wave of election-themed memecoins.
Two Solana-based altcoins, Jeo Boden and Donald Tremp, named after mashed-up versions of the last two US presidents, were instrumental in this prediction. These memecoins helped Solana surpass Ethereum in trading volume this Thursday.
“Memecoins will move deeper into the bull market,” said McMillin, suggesting that these two altcoins will be actively traded in the coming months. The rise of these memecoins coincided with former US President Donald Trump's strongest-ever support for crypto and current President Joe Biden's threat last week to veto a pro-crypto bill, thus making cryptocurrencies an election issue.
According to the analyst, the volatility experienced in Solana due to this news is expected to restore investors' confidence in the blockchain, which has been marred by outages over the years. “While Memecoins are a ridiculous and short-term speculative tool, they pave the way for other, more sustainable use cases, such as the tokenization of real-world assets,” McMillin added.
Currently, Solana is trading around $136, which is still far from the all-time high of $260 set in November 2021. But according to McMillin, the increased transaction volume served as a real stress test for the Solana network.
Additionally, the analyst suggested that Solana's price will be supported by more liquidity entering the market as the US Treasury takes steps to strengthen the economy.
*This is not investment advice.