After a major run last year, Solana has struggled to sustain its previous momentum. According to market analyst, Matthew Hyland, SOL will probably underperform compared to Bitcoin [BTC] and Ethereum [ETH]. Based on indicators and market dynamics, Hyland predicts a challenging path for SOL to break new all-time highs against BTC, mirroring 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 buying between $16-$25 last year so I don’t hate it by any means and still think it has upside in USD but I don’t think it is likely it will run away and outperform BTC and ETH going forward
Despite the challenges of outperforming the two leading crypto assets, Solana is known for its high speed and low transaction costs, attracting developers and projects. It has positioned itself as a potential “Ethereum killer,” aiming to resolve scalability issues that plague the ETH chain. Having said that, Ethereum’s transition to ETH 2.0, which promises scalability and energy efficiency, could overshadow SOL’s advantages.
Additionally, Bitcoin’s growing acceptance as a legitimate asset class in several nations and its potential to serve as a hedge against inflation bolster its long-term prospects.
Solana’s Downward Trend and Future Potential
While Solana has undoubtedly emerged as a competing rival and has upside potential in USD, its capacity to outshine BTC and ETH remains uncertain. Investors should keep a close eye on market developments and be cautious about betting SOL to lead the altcoins in the cryptocurrency realm.
On the price front, SOL’s price has been on a downward trend in the last week. On June 15th, the price was trading close to $168. At press time, the price is around $127.50, reflecting a decrease of roughly 23.36%.
Nevertheless, Solana is a popular platform for decentralized applications [dApps] due to its fast transaction times and low fees. If dApps become more widely used, it could drive up the demand for Solana and increase its price.