Following a significant surge last year, Solana has struggled to maintain its previous momentum. Market analyst Matthew Hyland suggests that SOL is likely to underperform compared to Bitcoin (BTC) and Ethereum (ETH). Hyland predicts that, based on various indicators and market dynamics, SOL will face challenges in reaching new all-time highs against BTC, similar to ETH’s performance in the previous cycle.
“IMO, SOL probably underperforms BTC and ETH going forward. I could be wrong about this, but I think the idea of SOL breaking to new ATHs against BTC is similar to ETH last cycle, which it did not happen. SOL had a major run; I was VERY VOCAL about buying between $16-$25 last year, so I don’t hate it by any means and still think it has upside in USD. However, I don’t think it is likely to outperform BTC and ETH going forward,” said Hyland.
Despite the hurdles in surpassing the two leading cryptocurrencies, Solana remains attractive due to its high speed and low transaction costs, drawing developers and projects. It has been labeled as a potential “Ethereum killer,” aiming to address the scalability issues that ETH faces. However, Ethereum’s transition to ETH 2.0, which promises better scalability and energy efficiency, might overshadow Solana’s advantages.
Moreover, Bitcoin’s growing acceptance as a legitimate asset class in several countries and its potential to serve as a hedge against inflation strengthen its long-term outlook.
Solana Slump: Analyzing The Decline & Forecasting Future Growth
While Solana has indeed positioned itself as a strong competitor with potential gains in USD, its ability to outperform BTC and ETH remains uncertain. Investors should closely monitor market trends and be cautious about betting on SOL to lead the altcoin market.
In terms of pricing, SOL has experienced a downward trend over the past week. On June 15th, it was trading near $168, but at press time, the price is around $127.50, marking a decrease of approximately 23.36%.
Nonetheless, Solana remains a popular platform for decentralized applications (dApps) due to its fast transaction times and low fees. If dApps see wider adoption, it could increase demand for Solana and potentially boost its price.
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Furthermore, the author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.
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