3 - 4 minute read
Real Vision CEO Raoul Pal has predicted that Solana, a competitor of Ethereum (ETH), could replicate ETH’s meteoric price rally from 2018 to 2021. Pal, in a blog post he originally shared with clients in January, opined that SOL had an optimistic future. He likened SOL’s price trend last year to that of Ethereum’s decline five years ago, postulating that SOL had completed a five-wave downtrend and is now set for an uptrend. In 2018, Ethereum also completed a five-wave downturn before rising to $4,742 in November 2021. With SOL, Pal believes there is a replication of ETH’s performance, which will boom soon.
Pal’s bullish enthusiasm for Ethereum in March did not just limit to a comparison with Bitcoin’s (BTC). He argued that Ethereum may skyrocket and outperform Bitcoin in the current market cycle. He stated that Ethereum’s total addressable market is massive, as it is a broader-based architectural protocol than Bitcoin. He added that it encapsulates more opportunities since other active protocols can build on it, contrasting Bitcoin, which has a different use case.
At present, ETH is up 4% to $1,933 in the last 24 hours, while SOL is trading at $21.15 with a 4.7% increase in the same period.
Solana’s Rise to the Top
Solana has been among the top-ranking cryptocurrencies in the market since 2020, powered by exponential growth in the decentralized finance (DeFi) sector, various NFT projects, and Metaverse platform production. Additionally, Solana has improved its throughput by improving its scalability.
According to Solana network’s GitHub report, Solana has achieved an average transaction rate of 75,000 per second. Additionally, USD Coin (USDC), a leading stablecoin, was integrated onto Solana by Circle, the USDC issuer. The integration aims to provide high scalability, low fees, and fast transactions for USDC users in the growing ecosystem of Solana’s DeFi marketplace.
Therefore, it comes as no surprise that Pal perceives Solana as a worthy competitor to Ethereum. He believes SOL has the potential for a price rally similar to Ethereum’s. The crypto market’s affinity to alternative cryptocurrencies is constantly highlighted in recent market movements that benefited other coins like Polkadot (DOT) and Binance coin (BNB).
The Bottom Line
Raoul Pal’s prediction for Solana to replicate Ethereum’s historic 2018 rally has generated some interest in SOL’s potential rise in the market. Its growing adoption in DeFi, NFTs, and the Metaverse platforms, alongside improved scalability through creating a more efficient blockchain, has attracted attention from investors in the crypto space. Ethereum is a tech giant that SOL will have to compete within many aspects further. However, investors may find value in SOL’s potential growth and the evident interest from the macro guru Raoul Pal.