Analysts are divided on the future price performance of Solana (SOL), with some experts suggesting that the asset will show impressive growth in 2024, while others believe that token inflation will slow down the rally.
Will Solana (SOL) Outperform Ethereum (ETH) This Year?
After Solana’s impressive growth, many analysts started to say that this altcoin will overtake Ethereum. Thus, Raoul Pal compared the ETH chart during growth in 2018 with the current dynamics of SOL and noted similar elements. “I simply flipped the ETH chart in 2018 and then compared it to the coin chart and they are almost identical. ETH is up 47x from that low,” he said.This hypothesis is supported by other traders who foresee an unprecedented influx of capital into the project.
Stick with the program… The Sun Also Rises $SOL
Log chart perfection? Maybe, just maybe… pic.twitter.com/S9Ctcs15pl
— Raoul Pal (@RaoulGMI) January 27, 2024
Community Support
Experts agree that the Solana ecosystem is distinguished by its loyal community, a variety of dApps and lower gas fees. “It’s easy to support a project when the price goes up. It’s more difficult when it drops by 50%. But the communities that don’t give up will always be the most successful. Look at the Solana community as an example, they never gave up, and look at how the last year has gone. A community that works together and pushes forward, no matter the cost, creates real movement. It’s hard to stop,” crypto investor Mark Colser wrote on X (Formerly Twitter).
However, some believe that reaching this milestone will be difficult due to SOL token inflation. In 2021, when SOL reached its all-time high, its market capitalization was more than $75 billion. However, it would now need to be around $111 billion to reach the peak of $260.
Another Point of View
Cryptocurrency analyst Bluntz Capital has suggested that Solana’s recent price movement could indicate a sharper drop in the value of the digital asset amid prevailing bearish market conditions. “SOL looks like all these weeks of sideways movement have been some kind of wave B triangle. I am interested in low prices again at $70,” the Bluntz wrote.
Over the past 24 hours, the SOL rate has risen by 5.85% on the daily chart and now the price, at the time of writing, is $97.75.
During the cryptocurrency market recovery last year, Solana was one of the main beneficiaries of the price explosion recorded at the time. In addition to the increased influx of capital into the network, Solana has also benefited from a surge in interest in blockchain.
During this period, the layer 1 blockchain reached a new all-time high, fueled by the hype around meme tokens towards the end of the year. However, since the beginning of the year, Solana is only trying to repeat the results achieved in 2023.
