Solana has surfaced as one of the top-performing cryptocurrencies of the last year, with Bloomberg even recently dubbing it “crypto’s next substantial thing.” Not only that, the last few days Solana surged into some new heights, and we’re still in the beginning of 2024, so whats next?
After nearly reaching a price of $118 on the 15th of Feb, the value of Solana, the world’s fifth-largest cryptocurrency by market capitalization, recently dropped nearly 2% despite its DeFi (decentralized finance) protocols achieving new trading volumes.
It’s not dim, though: SOL’s value is still 75% higher than it was last November, boasting a total gain of 776% from January last year. That’s one reason why many investors are still advocating for it. The cryptocurrency has become a popular contender to Ethereum (the world’s second-largest cryptocurrency after bitcoin), and many are pondering if 2024 might be a breakout year for Solana.
Regardless of what unfolds in 2024, SOL has already emerged as one of the top-performing cryptocurrencies of 2023, with Bloomberg even recently designating it “crypto’s next significant thing.”
This past November witnessed Solana gaining more than 70%, and in 2024, some crypto experts are suggesting that the network, a favorite among DeFi developers, will sustain its steady growth. However, the volatility of the network and the proliferation of scams in Solana’s DeFi space inevitably present their own set of challenges. Furthermore, while Solana boasts an impressive market cap, it still trails behind that of Ethereum.
So, will 2024 be Ethereum’s year, or Solana’s?
In contrast to SOL, Ethereum experienced a rebound year in 2023, and analysts anticipate it surging to $5,000 in 2024. Some are adopting an even more optimistic stance, expecting it to reach a staggering $8,000 by 2026 after Ethereum upgrades are implemented.
JPMorgan Opinion
For instance, one JPMorgan analyst believes that Ethereum’s imminent “Protodanksharding” upgrade might trigger a price surge to $8,000 in 2026. Nikolaos Panigirtzoglou, the Managing Director at JPMorgan, suggested that it was even plausible for the world’s second-largest crypto to enjoy a superior performance to bitcoin.
“ETH [Ethereum] has been trading inside a bullish triangle pattern for over 1.5 years,” analyst FieryTrading said. “In my eyes, a breakout from this pattern might result in substantial gains for ETH since it will burst through an area full of short-trade stop-losses, which will be compelled to buy back their positions.”
Cathie Wood: Solana is Better than Bitcoin and Ethereum
In an interview with CNBC, the head of the investment giant ARK Invest called the Solana blockchain one of the main infrastructure players in the market. Wood also admitted that the approval of a spot Bitcoin ETF in the US could lead to “selling on the news.”
Cathie Wood praised Solana (SOL) and she predicted that the asset price will increase by 20%. Wood praised SOL for its efficiency and cost-effectiveness. She noted that blockchain has consistently demonstrated excellent performance even amid difficult market conditions.
According to her, along with Ethereum , the network offers many more real-world applications than Bitcoin . At the same time, in many characteristics, SOL cryptocurrency is ahead of the blockchain of the second cryptocurrency. “At one time, Ethereum was faster and cheaper than Bitcoin . It is even faster and more economical than ETH ,” she emphasized.
