The case for a repeat of Ethereums 2018
According to an article on Cointelegraph, Analysts are stating that Solana can make the same move Ethereum did in 2018 if it follows the same path that Ethereum took during that time. In 2018 after the market crash and that year’s bear market, the price of ETH fell to $79 that December from a peak of $1529 resulting in a drop of 95%. That drop was seen with a massive recovery and growth to an all-time high of $4,950 in November of 2021.
Currently, Solana is sitting at an 85% drop from its all-time high of $267. The report goes on to state that if the token were to continue to fall to $15 then that would be a mimic of what Ethereum went through. Some analysts are comparing this to what ETH did and suspect SOL may take the same trajectory.
The fact that Solana is going through what one analyst calls a disillusionment phase is paramount to understanding how Solana could indeed see a positive growth akin to Ethereum. This disillusionment could be due to the myriad of issues that plagued Solana near the end of the year and onward until the recent update. Sentiment for crypto and web3 products such as NFTs have dropped recently during this bear market as well. At the time of this writing, Solana Labs has launched an update to the ailing blockchain that has seen overall positive reviews by users and the Solana NFT market is still mostly positive.
Per the Cointelegraph article, it can be noted that Solana has attracted many investors and recent investment funds in 2022 have reached over $110 million right after Ethereum’s $450 million. This can be seen on a chart provided by CoinShares. Solana is slowly but surely creeping up on Ethereum. Continued analysis point to Solana having a trend that may be positive for the next few years, thus contributing to the blockchain having a positive resurgence.
NFTs are also a major factor in the growth of Solana and how it competes with the Ethereum ecosystem. The Sales of Solana-based NFTs can be seen in a report by Nansen to have volumes that increase across multiple marketplaces while Ethereum NFT sales have seen a downtrend.
Those that know the difference between buying and selling on the blockchains will tell you that the cheaper gas fees on Solana are the main draw to the blockchain.
With all of this information, it can be quite enticing to believe that Solana could make the very same change as Ethereum but caution is suggested as the bear market and crypto never has a definitive answer- meaning nothing is guaranteed. The introduction of Solana Saga mobile and the Solana Mobile Stack show promise for the blockchain and the recent upgrade has fixed many issues. For all intents and purposes, the future looks brighter than the current situation but once again there is no real guarantee. While sentiment towards the Solana blockchain has become more favorable only time will tell what will really happen.