Real Vision CEO Raoul Pal expects Solana, a major competitor of Ethereum, to face a huge price explosion. In a blog post which Pal already published for his clients in January, the former CEO of Goldman Sachs already wrote that he is more than optimistic about Solana’s future. Pal expects Solana’s performance to be similar to Ethereum between 2018 and 2021.
Price explosion of 4,600 percent?
If Solana manages to match Ethereum’s performance from 2018 through 2021, the project could rise 4,600 percent from the bottom. “We think Solana is a repeat of Ethereum from 2018: a 95 percent drop in five waves,” said Raoul Pal. Ethereum flipped about 46x from the bottom of 2018 to the top of 2021.
At the time of writing, Solana is trading at $22.58 and is up 11.24 percent for the past 24 hours. This means that the coin is currently doing better than Bitcoin and Ethereum, but that of course says nothing about the long term.
In 2021, the project recorded an all-time high of more than $ 250, where it is now very far from. The sharp declines that followed were partly due to the fact that some large investors who got in early decided to sell tokens from the project en masse. In that respect, it remains to be seen whether Solana has a resurrection in her.
Better than Bitcoin
Furthermore, Raoul Pal is extremely bullish on Ethereum and expects the smart contract platform to outperform Bitcoin in the coming years. Based on both technical analysis and fundamental analysis, Pal sees opportunities for Ethereum to outperform Bitcoin at least over the next cycle.
Pal bases this, among other things, on the observation that the total market for Ethereum is much larger than that of Bitcoin. “Ethereum is a broader protocol that we can build more on. Bitcoin just doesn’t have that. It has a different application. In that respect, it is unlikely that Bitcoin can become that big,” Pal continues.
“Is the internet worth more than gold? Yes, it is that simple and that is the basis of my argument,” said the former CEO of Goldman Sachs. For now, however, Ethereum’s market cap is still 2.5x lower than Bitcoin and the market’s largest coin will outperform Vitalik Buterin’s Ethereum by 2023.
