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$SOL: Analyst Examines Solana's Explosive Growth Potential

source-logo  cryptoglobe.com 05 July 2024 13:53, UTC

In a recent video update, the YouTube channel Cheeky Crypto provided an in-depth analysis of Solana (SOL), discussing its potential price trajectory and the factors that could drive its growth. The video outlines several key predictions and comparisons to Bitcoin and Ethereum to offer a comprehensive forecast for Solana.

The hosts began by emphasizing the importance of understanding the current positions of Bitcoin and Ethereum to contextualize Solana’s potential. At the time of recording, Bitcoin’s market cap was approximately $1.96 trillion, a figure that many in the crypto community previously deemed unattainable. This remarkable growth in Bitcoin’s value sets a precedent for other cryptocurrencies, including Solana.

The discussion highlighted Bitcoin’s limited supply of 21 million coins, with 19.7 million already in circulation. He also mentioned that the most recent Bitcoin halving event (which took place on 19 April 2024), which reduced the issuance rate of new Bitcoin, is expected to create a supply squeeze, potentially driving prices higher. This context is crucial when considering Solana’s future, as market trends in Bitcoin and Ethereum often influence other cryptocurrencies.

Cheeky Crypto then delved into Solana’s technical analysis. The hosts predicted that Solana could reach impressive price levels, contingent on broader market movements and specific developments within the Solana ecosystem. He presented a range of price targets, starting with a conservative estimate of $688 per SOL, which would result in a market cap of $318 billion—a 5.1x increase from its current position.

For more ambitious predictions, the host suggested that Solana could potentially hit $1,192 per SOL, leading to a market cap of $550 billion and an 8.8x increase. These projections are grounded in the expected growth trajectories of Bitcoin and Ethereum. If Bitcoin were to reach $250,000 or even $500,000, and Ethereum were to surge to $15,000 or $25,000, he said that Solana’s rise to these levels would be more plausible.

The video also explored the possibility of spot Solana ETFs in the future. The popular crypto analyst believes the introduction of such financial instruments could significantly boost Solana’s market valuation, similar to the impact spot Bitcoin ETFs had on Bitcoin’s price. He speculated that Solana could achieve a market cap of $1.1 trillion with a price of $2,399 per SOL, marking a 17.7x increase. In an even more optimistic scenario, he points out, Solana could reach $5,100 per SOL, resulting in a market cap of $2.3 trillion—a 37.6x increase from its current position.

The host concluded by encouraging viewers to consider these predictions in the context of the broader market dynamics. He emphasized that while these targets might seem ambitious, the interconnected growth of major cryptocurrencies like Bitcoin and Ethereum could pave the way for Solana’s exponential growth.

At the time of writing, SOL is trading at around 130.40, up 2.01%, in the past 24-hour period. For the year-to-date period, SOL is up 24.97%.

Source: TradingView