Solana Surges 7% and Poised to Reach Half of Ethereum’s Value as Top Crypto Election Proxy, Trader Predicts

Solana is poised to potentially achieve 50% of Ethereum’s market cap during this cycle, according to recent price forecasts by traders. Daniel Cheung of Syncracy Capital noted the bullish closure of the week for Solana, drawing parallels to the third quarter of 2021 when significant returns were on the horizon.

Cheung highlighted Solana’s role as a hub for on-chain activities throughout the remainder of this cycle, emphasizing its appeal to retail investors. He also mentioned the potential for a Solana ETF, with the increasing likelihood of approval under a Republican administration, further boosting its prospects.

Another crypto trader, Eugene Ng Ah Sio, expressed confidence in Solana’s future market performance, particularly with the anticipation of Solana ETF applications and their potential approval under a Republican government. Ng Ah Sio contrasted meme coins like Maga and Jeo Boden, noting their limited appeal and liquidity compared to SOL, which he identified as the most liquid election proxy in the crypto space.

The surge in non-vote transactions on the Solana network, as reported by TheBlock, indicates a growing interest in the “memecoin” economy within the Solana ecosystem. These transactions encompass various activities beyond validator voting processes, such as transfers, smart contract interactions, and decentralized application (dApp) usage, showcasing the network’s vibrant ecosystem.

Solana’s average active addresses conduct over 30 transactions daily, far surpassing Ethereum’s average. Coinglass data reveals an 11% increase in open interest to $2.14 billion, with notable peaks in short liquidations and total value locked, indicating a robust market activity surrounding Solana.

Over the past 24 hours, SOL has seen a 7.5% increase in trading, contributing to a 13.3% gain over the past week. Looking ahead, the impact of Bitcoin as an institutional asset class will be a focal point at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

The evolving dynamics within the Solana ecosystem, coupled with market trends and regulatory developments, position Solana as a key player in the crypto landscape, potentially rivaling Ethereum’s market cap in the current cycle.