A crypto expert expects Ethereum competitor Solana (SOL) to see an upward movement of a whopping 50%. Could it be worth getting started?
What exactly does Solana do?
How high will this coin rise? Ethereum competitor Solana (SOL) has been moving upwards for months: +19,63% within the last seven days and the trading volume is also in the green at 23.24%. And although SOL has already made such gains, crypto experts expect further jumps!
Will SOL manage to return to its all-time high? This is at $260.06 and was marked on November 6, 2021. The current price is therefore more than 60% below its highs – so an investment could be worthwhile if the asset is strong enough to recover.
Many industry observers are convinced that this will be the case. Solana is the number 1 competitor for Ethereum (ETH), the second most valuable cryptocurrency – and could lose market share in the short term. The pseudonymous crypto analyst Bluntz_Capital, for example, sees a move above $150 as guaranteed, writing to his more than 238,000 Twitter followers (now X):
“SOL has reclaimed the breakout area, the rise to 150+ is now basically confirmed.”
$sol abc starting to look done now, this next leg should take us to 150+, trying to test and reclaim prior breakdown range now pic.twitter.com/BoXTFya0U5
— Bluntz (@Bluntz_Capital) January 24, 2024
Solana (SOL) is currently trading at $103.81 – so a jump to $150 would be equivalent to an increase of almost 50%! But is only Bluntz Capital’s forecast bullish on SOL – or do other forecasts for Solana also hold out the prospect of corresponding increases?
- There is both light and shadow here. According to Gov.capital’s prediction, for example, SOL will trade at $155 – but not until January 2025. In the long-term forecast, the asset will then explode to an impressive $458.18 (+341.36%) by 2029.
- However, the Solana forecast from Walletinvestor.com is positioned bearishly. SOL is a “bad” 1-year investment, it warns – and a decline to $82.26 is likely. In relation to the current price, this corresponds to a loss of -20.76%.
What many investors don’t take into account: SOL has been able to catch up significantly in the last few months because Ethereum (ETH) has fallen behind a little. Now, with “Dencun,” a new Ethereum upgrade is coming soon – and, similar to “The Merge,” it could generate massive hype and investor interest.
Tricky waters for #Ethereum, which is facing a rejection at 0.06 BTC.
Preferably a higher low needs to be established, through which, in 2-3 weeks time, the Dencun upgrade + Spot ETF hype needs to get started. pic.twitter.com/BnLf6SxsSS
— Michaël van de Poppe (@CryptoMichNL) January 24, 2024
According to analysts, Dencun could “significantly” optimize Ethereum’s efficiency, security and environmental friendliness – thereby depriving Solana of some of its competitive advantage. So Solana could lose massively against Ethereum and mine again when Ethereum goes live with the Dencun upgrade. What you should take into account:
- SOL is considered to be a relatively young and untested cryptocurrency that does not yet have the same acceptance, trustworthiness and variety of DApps as Ethereum.
- Additionally, SOL relies on a limited number of validators who must meet high hardware requirements to maintain the network. This could affect Solana’s decentralization and security and make the coin more vulnerable to attacks or failures.
- Although SOL is faster and cheaper than Ethereum, it is not necessarily better suited for all types of DApps. Some DApps may require more flexibility, interoperability, or privacy than SOL can provide.
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