Solana Up 7% And Could Get To 50% Of Ethereum's Valuation As 'Most Liquid Election Proxy In Crypto,' Trader Says

Solana SOL/USD could reach 50% of Ethereum's ETH/USD valuation in this cycle if trader’s latest price predictions come true.

What Happened: Syncracy Capital’s Daniel Cheung stated that with Solana closing the week on a bullish note, it is looking exciting again. The trader drew parallels of the current situation to the third quarter of 2021, where the most explosive returns were just around the corner.

Among the reasons to be blullish, he pointed to Solana as the home of on-chain activity for the remainder of this cycle with its accessibility to retail. This makes it one of the best assets to own. He also highlighted the high potential of a Solana ETF, with Trump’s rising election odds addding fuel to the fire.  

He concluded, "SOL can likely get to 50% of Ethereum's ETH/USD market cap this cycle."

Crypto trader Eugene Ng Ah Sio expressed his belief that SOL will become a favorite of the market. He attributed this to the fate of the Solana ETF applications being launched and their likelihood of approval under a Republican administration.

The trader highlighted the limitations of meme coins like Maga TRUMP/USD and Jeo Boden BODEN/USD, stating they have specific agendas and appeals but lack liquidity for larger players to speculate on. He identified SOL as the most liquid election proxy in crypto today.

Also Read: Top Crypto Trader Contemplates Retirement, Looks For ‘One Last Bullish Trade’ On Bitcoin, Ethereum, Solana

Why It Matters: TheBlock data shows non-vote transactions on the Solana network spiking from 23.4 million on June 30 to an all-time high of 36 million. This is largely driven by the booming "memecoin" economy within the Solana ecosystem.

For the unfamiliar, non-vote transactions refer to all transactions on the network that are not related to validator voting processes, which can include various activities such as transfers, smart contract interactions, and decentralized application (dApp) usage.

Compared to Ethereum's just two transactions, Solana's average active addresses are used to conduct more than 30 transactions daily.

Coinglass data shows a 11% surge in open interest to $2.14 billion, the highest since early July. Short liquidations peaked at $6.8 million, the highest since July 8. DeFiLlama data shows total value locked at $4.7 billion, the highest since June 6.

Price Action: In the past 24 hours, SOL is trading 7.5% higher, taking its seven-day gains to 13.3%.

What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next:

• Solana Jumps 5.5% As Cboe Files Application With SEC To List VanEck, 21Shares Spot ETFs

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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