Solana (SOL), the fifth largest cryptocurrency within the business, noticed a notable resurgence over the weekend, in step with the broader market rally and Bitcoin’s (BTC) rebound in direction of the $63,000 mark for the primary time in over per week.
SOL’s worth has efficiently recovered from the losses of the previous few months, surpassing the $150 degree and overcoming key resistance partitions, coupled with an optimistic assertion from Daniel Cheung, co-founder of the hedge fund Syncracy Capital, who believes that SOL is exhibiting comparable fractal patterns harking back to the third quarter of 2021, probably resulting in explosive features.
Extra Features Forward For SOL
In a social media submit on Sunday, Cheung expressed his bullish perspective on SOL’s worth motion because the token closed the previous week on a bullish be aware, additionally drawing comparisons to the third quarter of 2021, from which SOL’s worth started its rise from a low of $27 on the finish of July that 12 months, ultimately reaching its present all-time excessive of $259 in November 2021.
Cheung additionally drew parallels to the fourth quarter of 2020, highlighting that in each instances, essentially the most vital returns are simply across the nook, suggesting that additional worth features are on the playing cards within the final half of the 12 months, as was the case in 2021.
Associated Studying
Cheung additional emphasised that Solana is anticipated to stay a hub for on-chain exercise all through the remainder of this market cycle because of its accessibility to retail buyers, making it an interesting asset.
The potential introduction of a Solana exchange-traded fund (ETF), which is anticipated to have a considerable impression on SOL’s worth, coupled with the rising likelihood of Trump’s re-election, serves as further gas for the Solana ecosystem, Syncracy Capital’s co-founder said.
Solana Market Cap Projection
In an attention-grabbing statement, Daniel Cheung additionally said that he believes the Solana ecosystem can ” possible” attain 50% of Ethereum’s market capitalization this cycle as optimism across the blockchain grows.
At present, Solana boasts a market cap of $71 billion, considerably decrease than Ethereum’s $403 billion. Nonetheless, based on Cheung’s evaluation, if SOL had been to achieve 50% of Ethereum’s market cap, its market capitalization would attain a staggering $280 billion, triggering an exponential rise in SOL’s worth and pushing it to new all-time highs.
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It stays to be seen whether or not this latter state of affairs will play out, with expectations of a extra favorable regulatory framework within the US, with the potential for brand new laws for the business with a Trump victory within the November election and the potential approval of the anticipated Solana ETF market.
Nonetheless, Solana is buying and selling at $152 on the time of writing, up over 6% within the 24-hour time-frame and a big 438% year-to-date.
Featured picture from DALL-E, chart from TradingView.com