In a major reversal, Solana (SOL) managed to recover from a 6-month low of $109 and consolidate above the $150 mark in the last 24 hours, cementing its status as one of the best performers in the market year-to-date.
The recent market rally has breathed new life into Solana, but according to crypto analyst Miles Deutscher, this is just the beginning. In a detailed social media post, Deutscher listed 10 reasons why he believes SOL is poised for a stunning 5x to 10x uptrend and has the potential to hit the $1,000 price point.
Reasons why Deutscher is mega-bullish on Solana
Deutscher’s first point focuses on Solana’s consistent relative strength throughout the market cycle. The analyst claims that SOL has maintained its position and gained considerable attention, especially in the meme coin sector.
Deutscher also emphasizes the role of attention in price action, pointing out that Solana’s importance was underscored during the recent Bitcoin conference, where it ranked second in terms of attention after BTC, creating a positive feedback loop and driving SOL’s rise.
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Deutscher also points to Solana’s status as a “thriving crypto center,” asit is a first-class casino where Meme Coins– similar to games – are thriving, with the SOL token serving as a medium of exchange. This dynamic ecosystem, he says, contributes to the overall value created on the Solana network.
Another important factor in SOL’s favor, according to Deutscher, is the difference in market capitalization compared to Ethereum (ETH). Since Ethereum has a significantly higher market capitalization, SOL benefits from “speculative opportunities,” especially since its metrics continue to outperform Ethereum’s.
Deutscher points out that a possible revaluation of ETH could further increase the value of SOL. Market capitalizationpotentially leading to a valuation of $1,320 or $660 per SOL. In addition, the analyst noted that SOL is currently close to breaking the SOL/ETH resistance on the weekly chart, which he believes is “after that, the skies are clear.”
Boom in DeFi, revenue and institutional adoption
Deutscher delves deeper into the metrics of the Solana ecosystem, highlighting its leading position in user growth in the decentralized finance (DeFi) space, with the company outperforming established chains like Bitcoin and Tron.
The network’s total value locked (TVL) has reached new highs at $5.367 billion. decentralized exchange (DEX) volume has overtaken Ethereum on a rolling 30-day basis.
Furthermore, Solana’s revenue generation has surpassed that of major crypto industry players such as Ethereum, underscoring its importance in the cryptosphere.
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Deutscher also praised Solana’s latest upgrade, Firedancer, which aims to improve scalability, network performance and institutional compatibility, as a major milestone for the blockchain and another reason to be optimistic about the token’s prospects.
The analyst also noted that asset management giant Hamilton Lane had launched a fund on the network, NewsBTC reported. reported in July, indicating growing institutional interest in the Solana ecosystem.
Finally, the prospect of a spot Solana ETF, as proposed by VanEck, could potentially usher in a new wave of institutional capital and pave the way for further adoption and growth within the Solana ecosystem.
At the time of writing, SOL was trading at $153, 6% below Thursday’s weekly high of $163.
Featured image of DALL-E, chart from TradingView.com
