Solana (SOL), now the fifth-largest cryptocurrency, saw a notable rise over the weekend, coinciding with a market-wide rally and Bitcoin’s (BTC) resurgence towards the $63,000 mark. SOL’s price has bounced back from recent declines, breaking past the $150 mark and key resistance levels. This surge has been supported by an optimistic forecast from Daniel Cheung, co-founder of Syncracy Capital, who sees similarities between SOL’s current trajectory and patterns from the third quarter of 2021, hinting at potential substantial gains.
Bright Prospects for SOL
Cheung expressed his positive view on SOL’s recent performance on social media, drawing parallels to the third quarter of 2021, when SOL’s price jumped from a low of $27 in late July to a peak of $259 by November. He also likened the current period to the fourth quarter of 2020, suggesting that significant returns could be forthcoming in the latter half of this year, mirroring previous trends.
Cheung anticipates that Solana will continue to be a key player in on-chain activities due to its appeal to retail investors, which enhances its attractiveness as an investment. The potential launch of a Solana exchange-traded fund (ETF), which could greatly influence SOL’s price, along with the potential re-election of Trump, are seen as additional factors boosting the Solana ecosystem, according to Syncracy Capital’s co-founder.
Solana’s Market Cap Potential
Cheung also made a striking prediction about Solana’s market cap, suggesting it could reach 50% of Ethereum’s market capitalization during this cycle. At present, Solana’s market cap is $71 billion, considerably less than Ethereum’s $403 billion. According to Cheung’s analysis, if SOL reaches 50% of Ethereum’s market cap, it would rise to about $280 billion, potentially driving SOL’s price to unprecedented heights.
While it’s uncertain if this scenario will unfold, the outlook remains positive. Expectations of a more favorable regulatory climate in the US, potential new industry legislation, and the anticipated approval of the Solana ETF could support this growth.
Currently, Solana is trading at $152, up 6% in the past 24 hours and an impressive 438% year-to-date. With growing optimism around the blockchain, the future for SOL looks bright.
