A widely followed crypto analyst says another surge of more than 3x is in store for a red-hot altcoin that’s already up about 1,000% since the start of the year.
In a new video update, the anonymous host of InvestAnswers tells Its 461,000 YouTube subscribers knew that smart contract platform Solana (SOL) could still see a significant price increase in the future.
According to the strategist, he sees Solana’s dominance rising to 3% and the total crypto market cap rising to $5 trillion. SOL dominance is a metric that tracks how much of the total crypto market capitalization belongs to its Ethereum (ETH) rival.
The analyst notes that Solana’s growing dominance, combined with the rising overall cryptocurrency market cap, could mean SOL could reach a price tag well above $300.
“The SOL dominance is already at 2.4%, 2.5%. Could it be 3%? Yes – if that’s the case, 3% of $5 trillion is $150 billion, which brings the price of Solana to $363.
Well, I’m also going to back that number up with another metric. If you asked me a year ago when SOL was worth $8 [if] it would reach $363, [I’d have] said you’re crazy. Now it is absolutely feasible.”
Looking at another metric, the analyst says that if SOL’s share of Ethereum’s market cap were to rise to just 20%, this would translate into a $366 price target for Solana.
“$366 looks very similar to $363, which is based on 3% of crypto market dominance at a total valuation of $5 trillion. So it’s interesting how the two are almost in agreement. That is why it has always been present in my calculations since 2021 as an easy hurdle to overcome.”
Solana is trading at $110.40, down over 2.60% in the past 24 hours. A move toward the analyst’s price target indicates upside potential of more than 228% for SOL.
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Featured image: Shutterstock/Vadim Sadovski/solvertv
