On its way into the crypto top 10 by market capitalization, Solana (SOL) has hit a new all-time high and has just briefly risen above $ 80. Currently (time of this article) SOL is trading at $ 72 with a gain of 2.44% on the daily chart.
Solana is insensitive to the downside moves that most cryptocurrencies in the top 10 have experienced. SOL, for example, posted a gain of over 140% last month and seems ready for further appreciation in value.
Investor Daniel Cheung has been positive about this network and its ecosystem. He believes it will be a strong competitor for Ethereum in the coming months. Cheung therefore expects SOL to be one of the best risk-reward investments in the crypto space in the long run.
After the recent surge to an all-time high, Cheung has cited the main reasons that could prompt investors to reconsider the possibility of short-term profit-taking.
Loud Cheung has given Solana the potential for another rally that could boost the price by four times its current value. A look at the fundamentals of the ecosystem of the network supports the bullish thesis.
The current total of SOL (TVL) has followed the price trend and recently reached a new all-time high of $ 1.93 billion. The ecosystem has benefited from several DeFi and non-fungible token (NFT) product launches.
Although TVL is not a perfect measure of acceptance, it is a good indicator. Because: It shows how much value people entrust to smart contracts.
As a result of the rise of Solana, other ecosystems that have been a major hub for financial applications are on the decline – such as the Binance Smart Chain.
The long-term impact on the altcoin market: what could trigger Solana
In addition, Cheung expects Solana’s fundamentals to continue to strengthen – with the potential for its ecosystem to increase its overall value by 15 to 20 times the current level.
“Assuming a baseline scenario where I believe TVL could rise to 4 billion and apply a TVL multiple of 15 to 20, $SOL could reach a circulating market capitalization of 60 to 80 billion. That would be four times as much from here. If you think in large dimensions, you get rich when investing.“
The pseudonymous trader “Altcoin Sherpa” shares Cheung’s optimistic view. The trader believes that Solana and Terra, another Layer 1 project that aims to become a strong competitor for Ethereum, could absorb capital from other altcoins.
So SOL and LUNA could benefit, while other cryptocurrencies bleeding:
“SOL and LUNA will be black liquidity holes for the altcoin market in the coming days/weeks. If you ask yourself, ” Why is my altcoin not moving?”, then that’s probably because the whole $ goes into the super trendy stuff. It is good to have some commitment in these.“
Text credits: Newsbtc
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