A popular crypto analyst sets long-term price targets for an Ethereum (ETH) competitor based on bullish predictions for ETH’s future.
In a new strategy session, the host of the financial education YouTube channel InvestAnswers first actions with its 410,000 followers an Ethereum chart from Ryan Allis of Coinstack.
The chart shows significant increases in the valuation of the leading smart contract platform over the next decade, especially beginning in 2025.
InvestAnswers host says,
“That’s pretty staggering, even short-term goals like December 2022 at $12,581…and so on to 2025 where it could be worth $100,000.”
All is States his ETH prediction model is based on his belief that “all assets have an intrinsic price that derives from their utility and their cash flows”, and he expects ETH cash flows to increase in coming years.
The InvestAnswers host then moves on to discuss how predicting the future valuation of the Solana (SOL) layer-1 blockchain protocol is intrinsically tied to Ethereum price action.
“I believe that if Ethereum is worth those numbers, Solana or any Tier 1 should be worth at least 20% of that market cap.
I pulled some numbers and took the Ethereum price target based on those patterns, took the Ethereum supply which is going deflationary, so I estimate around Dec 30th we will have around 110m ETH vs 119m today today.
Then I calculate the market capitalization, it would be $1.5 trillion if ETH goes to $12,500, which is about 1.5 times the Bitcoin market capitalization. And then I calculated SOL, 20% of that market cap over all the years and divided by the supply of SOL, which of course is a bit inflationary, growing at 9.6% per year.
This gives us Solana price targets, which are different from mine.
The analyst clarifies that while Solana is currently worth around 10% of Ethereum’s trading price, if ETH were to reach the levels predicted above, the fair market value of SOL would double against ETH.
“That would give us a price target in December of this year at around $935. Yeah that’s a lot of hopium, that would be like a 9x from where we are today.
I don’t expect it, but if these numbers are correct for Ethereum, that’s where Solana’s price could theoretically go.
The YouTube host concludes by saying that he believes in the Solana ecosystem despite some growing pains he’s had.
“Solana, despite its bugs and 5pm outage in September, it’s better than what ETH 2.0 was expected to be.”
At the time of writing, Solana is down 5% on the day and trading at $102.08, while Ethereum has fallen 3.07% to $3,025 over the same period.
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