Following the Solana 1,000% start-up in 2023 and its return to the crypto top 10 by market capitalization, it has once again been pitted against Ethereum. This was further driven by the fact that Solana saw its blockchain activity surpass that of Ethereum and even generate more revenue at the same time. One place where Ethereum continues to outpace Solana, however, is in market capitalization. With Solana still well below Ethereum in this category, how much will one SOL cost if it can eventually reach ETH’s market cap?
Solana with Ethereum’s market cap
Currently, Solana’s market cap is $70.3 billion, compared to Ethereum’s $315 billion at the time of writing. This means that the ETH market cap is more than four times larger than that of SOL. It shows that SOL still has a long way to go before it can overtake ETH, but the gap is not so wide that this is impossible, especially when it comes to cryptocurrencies.
Using data from Market capitalizationwhich compares the market cap of two cryptocurrencies and then shows what one would be at the market cap of the other, we can see how high the SOL price would be if it reached the market cap of ETHand it is substantial.
According to the website, if Solana’s market cap were to reach $315 billion, like Ethereum, its price will exceed $600. More specifically, it would be $670.83, which is an increase of 4.47x from now, or an increase of 447%. This would also push it above the likes of BNB and Tether’s USDT in terms of market capitalization, making it a top 3 cryptocurrency.
On the other side of this, if the Ethereum’s market cap would drop lower than Solana’s market cap, this would send the price down to levels not seen since 2021. The website values ETH at $587.83 at a market cap of $70.7 billion, which would be a 77.5% crash.
Reaching half of ETH’s market cap
VacEck analysts recently joined the Solana and Ethereum debate, predicting how high the former can go versus the latter. The analysis suggests that the market capitalization of SOL could reach at least half that of ETH, which would put it somewhere around $157 billion. In this case, SOL price is expected to rise above $330.
The analysts explained that this could happen due to the increase in activity on the Solana blockchain, which has overtaken Ethereum. A major drawback, however, is the fact that institutional adoption of SOL has been slow. However, it does not take away the bullishness that continues to surround the altcoin.
Featured image created with Dall.E, chart from Tradingview.com