Solana (SOL) still has room to go lower in the short term, but the SOL / USD pair could gain 5000% if it continues in the footsteps of its big rival Ether.
This is Fractal Ether 2018
SOL is likely to drop to $ 15 on expectations that it will behave like Ether during the 2018 market crash.
In particular, the price of Ethereum’s native token, Ether (ETH), fell to almost $ 79 in December 2018 after undergoing a 95% correction earlier in the year from its peak of $ 1,529. It then underwent a long recovery, increasing almost 6,000% over the next four years and thus reached a record high of around $ 4,950 in November 2022.
Solana, which competes with Ethereum for the best place in the smart contract space, fell over 85% after peaking near $ 267 in November 2021. This leaves it with a 10% chance of falling compared to the highest level ever.
According to well-known analysts PostyXBT, SOL could fall as low as $ 15, reflecting the 2018 Ether bear cycle. In addition, the Solana signal could see an ether-like recovery in the coming years, which could bringing the price of SOL to over $ 750, he adds. .
$ ETH it made ~ 60x from the lows in 2018 despite many people wanting zero success …
Yew $ SOL drops to $ 15 I think ~ 50x on the cards at the same time people want to nuke it to zero.
For those who question the functionality and breakdown issues, remember that hype always wins.
– Posty (@PostyXBT) July 11, 2022
ETH grew about 60% from the low level in 2018 when many people wanted it to hit zero … If $ SOL drops to $ 15, I think its return will be about 50 times the current level, despite calls for zeroing. For those questionable and broken functionality questions, remember that hype always wins. – Posty (@PostyXBT) July 11, 2022.
Meanwhile, another popular analyst, Spencer Noon, goes the same way in his analysis, though he does not share a clear upside – down goal.
noon supports that Solana went through a phase of “diligence” that hit the Ether market in 2018, noting that the project would eventually overcome its difficulties.
“Solana has a vibrant developer ecosystem, which can solve its downtime problems. This will be seen as you look back, ”he said.
Solana’s funds will attract $ 110 million in 2022
Solana-based investment funds attracted more than $ 110 million in inflows in 2022 as of July 1, compared to $ 450.9 million that came from Ether funds, according to a recent CoinShares weekly report.
The inflows are visible as Solana’s market capitalization is gradually approaching Ethereum’s after its launch in March 2020.
The Ethereum / Solana market cap ratio is currently around 32.5 compared to the December 2020 peak of 525.3, according to data tracked by TradingView.
The metrics suggest a strong flow of capital into the Solana ecosystem, a trend that could continue in the coming years.
Amount of NFTs
Solana also presents a major challenge to Ethereum based on other key metrics.
Read also: Traders are debating whether Solana (SOL) is buying, now that it is out of 87% of its all – time high.
For example, according to Nansen, Solana’s weekly volumes have steadily increased on major non – interchangeable (NFT) marketplaces, including OpenSea and MagicEden, while Ethereum has been steadily increasing in recent months.
Solana Fees Vs. ethereum fees
In addition, lower fees are the main reason for the increase in the number of NFTs on the Solana blockchain compared to Ethereum, according to the latest weekly report from Arcane Research.
“Ethereum’s blockchain network speed has decreased as transaction costs have increased, allowing Solana-based NFT markets to rise in speed,” the report notes, adding:
“The average transaction fee on Ethereum in June was $ 6.5, in contrast to the pennies users currently pay for block space on Solana.”
Like the NFT volume, there has been a strong upward trend in the amount of gas charges paid since the summer of 2021, with a slight decrease since the peak.
– Cé (@ whisz7) July 11, 2022
Daily gas charges paid on Ethereum vs Solana $ ETH $ SOL pic.twitter.com/FJTibaEkVG – Whis (@ whisz7) July 11, 2022.
The views and opinions expressed herein are those of the author only and do not necessarily reflect the views of Cointelegraph.com. All investment and business transactions involve risk. You should do your own research before making a decision.