A popular crypto analyst and trader has set a long-term price target for Solana (SOL), a stern Ethereum competitor, based on optimistic predictions about the future of ETH.
In a new strategic session first reported by Daily Hodl, the host of InvestAnswers, a financial education YouTube channel, shared an Ethereum chart from Ryan Allis of Coinstack.
The chart from Allis indicates a notable price increase over 10 years, starting from 2025.
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Host of InvestAnswers noted:
“It’s pretty staggering, even short-term targets like December 2022 at $12,581… and on and on up to 2025 where it could be worth $100,000.”
According to Allis, his Ethereum (ETH) prediction model is based on his belief that assets have an intrinsic price, which is derived from their use cases and cash flow. So, he expects an increase in cash flows to the digital token ETH in the coming years.
How Solana Prediction is Intrinsically Connected to the Price Action of Ethereum
In the course of the strategic session, the analyst discussed how Solana (SOL) prediction is intrinsically connected to the price action of the second-largest cryptocurrency by market cap, Ethereum (ETH):
“I do believe that if Ethereum is worth these numbers, Solana or any layer-1 should be worth at least 20% of that market cap. I pulled in some numbers and took the Ethereum price target based on these models, took the Ethereum supply which is going deflationary, so I estimate that by about December 30 we’ll have about 110 million ETH versus 119 million today.
Then I calculate the market cap, it’d be $1.5 trillion if ETH goes to $12,500, which is about 1.5x the Bitcoin market cap. And then I calculated SOL, 20% of that market cap over all the different years and divided by the SOL supply, which of course is a little bit inflationary going up 9.6% per year. That gives us some Solana price targets, which are different from mine…
“That would give us a price target in December of this year at about $935. Yes, that’s a big hopium number, that’d be like a 9x from where we are today.
I don’t expect it, but if these numbers are right for Ethereum, this is where possibly, theoretically Solana price could go.”
Read Also: Shark Tank’s Kevin O’Leary Explains Why He’s Bullish on Solana and Polygon and Hedera
The host of InvestAnswers concluded by saying that he still believes in the potential of Solana (SOL) irrespective of issues the network faced lately. He believes that Solana’s current network capability is better than what Ethereum 2.0 was planned to be.
At the time of filing this report, SOL is trading at $96.41, with a relatively 8% price downtrend in the last 24 hours, according to CoinMarketCap.
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