Solana (SOL), the fifth largest cryptocurrency in the industry, saw a notable resurgence over the weekend, in line with the broader market rally and Bitcoinโs (BTC) rebound towards the $63,000 mark for the first time in over a week.ย
SOLโs price has successfully recovered from the losses of the past few months, surpassing the $150 level and overcoming key resistance walls, coupled with an optimistic statement from Daniel Cheung, co-founder of the hedge fund Syncracy Capital, who believes that SOL is exhibiting similar fractal patterns reminiscent of the third quarter of 2021, potentially leading to explosive gains.
More Gains Ahead For SOL
In a social media post on Sunday, Cheung expressed his bullish perspective on SOLโs price action as the token closed the past week on a bullish note, also drawing comparisons to the third quarter of 2021, from which SOLโs price began its rise from a low of $27 at the end of July that year, eventually reaching its current all-time high of $259 in November 2021.ย
Cheung also drew parallels to the fourth quarter of 2020, highlighting that in both cases, the most significant returns are just around the corner, suggesting that further price gains are on the cards in the last half of the year, as was the case in 2021.
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Cheung further emphasized that Solana is expected to remain a hub for on-chain activity throughout the rest of this market cycle due to its accessibility to retail investors, making it an appealing asset.ย
The potential introduction of a Solana exchange-traded fund (ETF), which is anticipated to have a substantial impact on SOLโs price, coupled with the increasing probability of Trumpโs re-election, serves as additional fuel for the Solana ecosystem, Syncracy Capitalโs co-founder stated.ย
Solana Market Cap Projection
In an interesting observation, Daniel Cheung also stated that he believes the Solana ecosystem can โ likelyโ reach 50% of Ethereumโs market capitalization this cycle as optimism around the blockchain grows.ย
Currently, Solana boasts a market cap of $71 billion, significantly lower than Ethereumโs $403 billion. Still, according to Cheungโs analysis, if SOL were to reach 50% of Ethereumโs market cap, its market capitalization would reach a staggering $280 billion, triggering an exponential rise in SOLโs price and pushing it to new all-time highs.
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It remains to be seen whether this latter scenario will play out, with expectations of a more favorable regulatory framework in the US, with the potential for new legislation for the industry with a Trump victory in the November election and the potential approval of the anticipated Solana ETF market.ย
Nonetheless, Solana is trading at $152 at the time of writing, up over 6% in the 24-hour time frame and a significant 438% year-to-date.ย
Featured image from DALL-E, chart from TradingView.comย
