A popular crypto analyst thinks that the Ethereum (ETH) competitor Solana (SOL) is dramatically undervalued.
In a new update, the anonymous host of InvestAnswers tells his 444,000 YouTube subscribers that the number of daily active addresses on Solana rivals that of Ethereum, yet it is currently only worth 1/25th of ETH’s market cap.
“[Solana] does way more transactions. And the people who are active on the chain are a lot more active and the breadth of DApps (decentralized applications) is broader, etc., etc. And this is a crazy thing that’s going on – it’s mind-boggling, but sometimes markets are irrational.”
The analyst notes that Solana should, at the “bare, bare minimum,” be worth 1/10th the market cap of Ethereum.
Ethereum’s market cap hovers around $227.5 billion at time of writing, meaning 1/10th of that would be around $22.75 billion. Solana’s market cap is currently $8.1 billion, meaning reaching 1/10th of Ethereum’s market cap would equate to a nearly 3x jump.
Says the InvestAnswers host,
“It’s hard to say exactly where this can go, because there’s no solid trading pattern between both, because literally, as I mentioned before, SOL has been bleeding against ETH for the last year with the FTX debacle, etc., etc. It’s just been doing badly. And it needs to break out, and that means it needs to get above $30 and then [it’ll be] off to the races.”
SOL is trading at $20.57 at time of writing. The 11th-largest crypto asset by market cap is down more than 1% in the past 24 hours.
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