Independent market analyst Hansolar has argued that Solana (SOL) appears poised to undergo a price surge amidst the current cryptocurrency market boom, particularly led by Bitcoin (BTC).
Hansolar has drawn comparisons between Solana’s potential for price appreciation and what Ethereum (ETH) experienced in previous cryptocurrency bull cycles. For instance, during the 2020-2021 bull run, ETH’s price surged from around $85 to $4,935 alongside Bitcoin’s rise.
Of significant note, ETH saw a staggering 1,400% increase in price after Bitcoin hit a new all-time high above $20,000. This suggests a repeating pattern where Solana could experience significant growth as Bitcoin reaches new highs. According to Hansolar, Bitcoin’s potential new all-time high could present similar opportunities for Solana.
At present, SOL’s price is only around 50% of its previous all-time high, similar to ETH when Bitcoin approached its previous all-time high in the last cycle. This indicates that if Bitcoin were to reach $150,000, Solana could target $600 as a long-term price goal, representing a roughly 450% increase from current levels.
Solana has demonstrated efficiency in recent network deployments, with its total value locked (TVL) reaching an all-time high since January 2023. This steady growth aligns with quarterly growth trends monitored by Messari.
In theory, as more assets are locked into DeFi platforms, the circulating supply of these tokens may decrease, leading to increased demand relative to supply. This scarcity effect could contribute to the rise in prices of locked tokens, and Solana’s increasing TVL adds to the interest in SOL tokens.
In the short term, Solana is targeting a price of $200 as a primary price goal, based on continued upward trends on daily charts. If confirmed, this model could see SOL reaching $200 in March, representing a roughly 75% increase from current levels.