Analyst Compared Solana To Ethereum ICO Boom, What Does This Mean For SOL Price?
Crypto analyst Santiago Santos recently drew parallels between the Solana and Ethereum networks. As part of his analysis, Santos suggested that Solana had an advantage over Ethereum, something which he believes could cause the former to catch up with the latter soon enough.
Solana’s Recent Run Similar To Ethereum’s ICO Boom
Santos mentioned in an X (formerly Twitter) post that Solana is “going through what Ethereum did during the ICO boom.” However, unlike then, when it was only whitepapers, Solana has applications seeing meaningful usage and growth, the analyst further claimed. This is one of the reasons why Santos believes that Solana will “converge on Ethereum faster than most believe.”
The crypto analyst was referring to Solana’s recent run, with the network seeing a lot of activity. Some of this activity has been credited to the applications and protocols being built on the Solana network. Particularly, the Decentralized Exchange (DEX) Jupiter has been drawing a lot of attention to Solana and even recently surpassed Ethereum’s Uniswap in daily trading volume.
On the other hand, Ethereum is known to have generated significant buzz at the height of the ICO (Initial Coin Offering) boom, with a lot of projects swamping the network at the time. Notably, Ethereum’s Decentralized Finance (DeFi) landscape then happened to give the network an edge, a contributing factor to ETH’s rise to become the second largest crypto token.
Santos’ recent comment echoes a growing belief in the crypto community that Solana may indeed be primed enough to take Ethereum’s place as the King of DeFi. Narratives that have continued to work in Solana’s favor include its speed and cost-effectiveness.
Following Santos’ post, another X user hinted that Solana’s adoption rate would probably be higher than Ethereum’s, considering users don’t have to worry about high fees.
SOL price loses footing above $100 | Source: SOLUSD on Tradingview.com
Solana To Hit $150 Soon?
The significant activity on the Solana network is believed to be one of the catalysts that could drive SOL’s price to $150. Several analysts have continued to highlight that price level as the next significant stop for the crypto token. Moreover, Jupiter is set to airdrop its JUP tokens on January 31.
This highly anticipated event will cause new money to flow into the Solana ecosystem, with SOL’s price likely to be positively impacted by this splurge of liquidity. Beyond Jupiter, other DeFi projects on Solana are making waves, and these projects could also launch their native tokens at some point in the year.
At the time of writing, SOL is trading at just over $100, down over 2% in the last 24 hours, according to data from CoinMarketCap.
Featured image from The Block, chart from Tradingview.com
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