Highlights:
- A market analyst claims Solana could claim 50% of Ethereum’s market cap in this cycle.
- The market expert’s claims stemmed from Solana’s incredible run in the past week.
- The analyst highlighted Trump’s possible re-election and Solana’s potential ETF approval as driving factors.
Following Solana’s (SOL) impressive run last week, a renowned expert has asserted that the token could claim 50% of Ethereum’s (ETH) market cap. The analyst’s prediction stemmed from past market trends that resulted in an explosive run for Solana.
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Solana’s Impressive Run in the Just Concluded Week
At the time of press, Solana is priced at about $152.12, courtesy of a 4.7% upswing from the previous day. In its 7-day-to-date statistics, SOL recorded a 13.4% upswing, with minimum and maximum prices ranging between $132.19 and $152.12, respectively.
The above price disparity in Solana’s 7-day data supports initial claims about the token’s impressive run in the concluded week. Meanwhile, relative to its 14-day-date and month-to-date variables with 3.2% and 5% increments, respectively. It becomes more glaring to say that the past week was incredible.
Solana’s current selling price implies that the decentralized crypto protocol is 41.5% below its all-time high (ATH). In addition, SOL’s market cap has a $70.55 billion valuation, while its 24-hour trading volume surged by 26.58% to $1.98 billion.
Expert Envisages Exciting Times Ahead, Citing Previous Trends
In a tweet making rounds among market participants, Daniel Cheung, a co-founder at Syncracy Capital, has predicted SOL’s bright outlook. The introductory part of his post on X read thus, “SOL closed the week bullish — things are starting to look exciting again.”
Per Cheung, a trend similar to 2021’s Q3 cycle with some shades of 2020’s Q4 has been replicated on Solana’s chart.“In both cases, the most explosive returns were just around the corner,” the market expert added.
Cheung Highlights Factors Driving Solana’s Anticipated Boom
Highlighting some of the reasons fuelling Solana’s anticipated and sustained rally, Cheung spotlighted on-chain activities on Solana’s network. He noted that Solana’s retail accessibility, which has made it an ideal asset, will positively impact SOL’s on-chain activities. In his exact wording, Cheung remarked, “Solana will continue to be the home of on-chain activity for the remainder of this cycle given its accessibility to retail, making it one of the best assets to own.”
In addition, the market expert highlighted potential positive influences of Solana’s Exchange Traded Fund (ETF) approval and Trump’s re-election possibilities. These two factors, especially Trump’s possible reinstatement as the United States President, appear more crucial in catalyzing market rallies.
Finally, Cheung noted that weaker hands have sold off their SOL holdings, courtesy of a group he tagged “flip-flopping KOLs.” For context, flip-flopping KOLs implies Key Opinion Leaders (KOLs) with little or no experience in predicting market actions. He added that only a few market participants with faith in Solana’s expansion prospect have persevered till the end. “I am still a believer that SOL can likely get to 50% of ETH’s market cap this cycle,” Cheung remarked to conclude his assertions.
$SOL closed the week bullish — things are starting to look exciting again.
My gut tells me we are playing on a similar fractal to Q3’21 with shades of Q4’20 — in both cases the most explosive returns were just around the corner.
Solana will continue to be the home of onchain… pic.twitter.com/l9jDN3GIV3
— Daniel Cheung (@HighCoinviction) July 15, 2024
Implications of Claiming 50% of Ethereum’s Market Cap
At the time of writing, Ethereum is changing hands at roughly $3,350, reflecting a 5.1% upswing in the past 24 hours. Remarkably, ETH’s market cap is valued at about 403.04 billion, while it boasts a $11.98 billion 24-hour trading volume.
Capturing 50% of Ethereum’s market cap implies that Solana’s market capitalization will be worth approximately $201.52 billion. Consequently, based on SOL’s 464.07 million circulating supply, each token will be worth about $431.5. Relative to Solana’s $260 ATH, Cheung’s analysis could be deemed a realistic target. Notedly, attaining $431.5 from SOL’s current $260 peak price will only imply a 65.96% surge.
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