Amid what has been a rather volatile start to the year for digital assets across the board, one analyst has projected that Solana (SOL) could be prepping a 50x surge in 2024. Indeed, the often labeled “Ethereum killer” could be following the same trajectory that led ETH to earn 50x returns in 2018.
The asset saw a positive end to 2023 and could be preparing to go on an extended rally. Moreover, many have observed the potential for the asset to even surpass Ethereum. Especially if it can mirror the bull run that propelled ETH. Still, some obstacles may hinder an eventual rally; let’s explore more of what those could be.
Also Read: Solana: Will SOL Reclaim its All-Time High of $259 in 2024?
Solana Could Mirror Ethereum 2018 Run to REach 50x Gains in 2024
The optimism for Solana has been immensely high as we are just one week into the new year. Along with the overall crypto market, there are high expectations on how several assets could perform throughout the year. Moreover, one analyst has pointed to the Ethereum killer for its immense potential.
Indeed, analyst Raoul Pal believes that Solana (SOL) could be poised for a 50x surge in 2024. Moreover, he notes that the asset could parallel the 2018 surge that propelled Vitalik Buterin’s Ethereum to new heights. Additionally, traders are preparing for renewed funds to enter into the ecosystem as the year progresses.
Also Read: Solana Holds Steady Above $100; Will SOL Hit $130 Soon?
“So I just flip up the chart of ETH in 2018, and then put it against the chart of Solana,” Pal said. “They are pretty much identical. ETH did 47x from that low.” Subsequently, Solana could begin to flourish as an Ethereum alternative. Its closed system, passionate community, and lower gas fees have already created stiff competition between the two.
Conversely, some believe inflation of the SOL token could hinder any sort of rally. When SOL reached its previous all-time high in 2021, it had a market cap of more than $75 billion. Now, it would require a market cap of $111 billion in order to reach a new all-time high above $260. Although not impossible, it certainly begins to hinder expectations for the asset ceiling throughout 2024.