Solana (SOL) Price Severely Undervalued, According to InvestAnswers
According to an anonymous host on InvestAnswers, a prominent crypto analyst, Solana (SOL), is currently undervalued compared to its competitor Ethereum (ETH).
In a recent update to his 444,000 YouTube subscribers, the analyst highlighted that Solana’s daily active addresses are comparable to Ethereum‘s, despite SOL’s market cap is only 1/25th of ETH’s.
The analyst expressed surprise at this discrepancy, considering Solana’s higher transaction volume, more active user base, and a broader range of decentralized applications (DApps). However, the analyst acknowledged that market behavior can sometimes be irrational.
The analyst suggested that Solana should be valued at a minimum of 1/10th of Ethereum’s market cap. As of now, Ethereum’s market cap stands at around $227.5 billion, which implies that Solana should be valued at around $22.75 billion.
Currently, Solana’s market cap is $8.1 billion, indicating a potential increase of almost threefold if it were to reach 1/10th of Ethereum’s market cap.
READ MORE: Proposed 30% Tax on Bitcoin Mining Scrapped in US Debt Talks
The InvestAnswers host stated that it is difficult to predict the exact trajectory of Solana’s value due to the absence of a definitive trading pattern between the two cryptocurrencies. SOL has performed poorly against ETH in the past year, partly due to the FTX debacle.
The analyst believes that for Solana to gain momentum, it must surpass the $30 mark, after which it could potentially see significant growth.
As of now, Solana is trading at $20.57 and has experienced a slight decline of over 1% in the past 24 hours.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
