It has been just revealed that the price of Solana depends on a move that Ethereum could make. Check out the latest reports about this below.
SOL price is tied to ETH
A well-known cryptocurrency analyst believes that traders may be undervaluing Solana’s (SOL) potential in the upcoming bull market.
The host of InvestAnswers explains in a recent strategy session that they predict SOL should reach a market cap equivalent to 10% of Ethereum’s (ETH) value during the next market expansion.
Assuming Ethereum reaches a peak of $8,000 in the next bull market, the analyst theorizes that if Solana achieved 10% of ETH’s market cap, which it has already done in the past, it would imply a $231 price target for SOL.
However, the analyst does not rule out the possibility of SOL reaching 20% of ETH’s market cap, which is achievable, according to InvestAnswers.
“If – which has always been part of my thesis – if Solana goes to 20% of the ETH market cap, that would take us to a $192 billion [market cap], and, given today’s prices and the number of tokens, that would take the price to $461, and that would be an ROI (return on investment) of 2,038%, and that would only be 5%, approximately of the crypto market cap. So, it’s not beyond the realm of possibilities at all.”
The trader continued and said the following:
“But what’s even more strange is we got above the 10% threshold already in the past.
This is the SOL upside chart… You can see here the yellow line is the 10% of ETH market cap, and the Solana price in blue breached that back in October 2021.”
ETH price in the news
According to a recent article by CNBC, Standard Chartered, one of the world’s largest banks, believes that Ethereum (ETH), a smart contract platform, could experience a significant growth of more than 2,100%.
The bank predicts that Ethereum’s price will eventually reach as high as $35,000, after reaching $8,000 in about three years. Check out our previous article in order to learn more details.
