Following the Solana advances 1,000% in 2023 and its re-entry into the top 10 cryptocurrencies by market capitalization, it has once again faced ethereum. This was further boosted by the fact that Solana saw its blockchain activity surpass that of ethereum and even generate more revenue at once. However, one place where ethereum continues to outperform Solana is in its market capitalization. With Solana still far behind ethereum in this category, how much will a SOL cost if it eventually manages to reach eth's market cap?
Solana with ethereum market capitalization
Currently, Solana's market capitalization stands at $70.3 billion, compared to ethereum's $315 billion at the time of writing. This means that the market capitalization of eth is more than four times that of SOL. It shows that SOL still has a ways to go before it can catch up to eth, but the gap is not so wide that it is impossible, especially when it comes to cryptocurrencies.
Using data from ethereum/solana/” rel=”nofollow noopener” target=”_blank”>Market capitalization ofwhich compares the market cap of two cryptocurrencies and then shows what the market cap of the other would be, we can see how high the price of SOL would be if it reached the market cap of eth, and it is substantial.
According to the website, if Solana's market cap reached $315 billion like ethereum, its price would exceed $600. More specifically, it would be $670.83, which is a 4.47x increase from here, or a 447% increase. This would also put it above BNB and Tether's USDT in terms of market capitalization, making it one of the top three cryptocurrencies.
On the other hand, if the ethereum/ethereum-whales-70000-eth/” rel=”nofollow noopener” target=”_blank”>ethereum market capitalization would fall below Solana's market cap, would cause the price to plummet to levels not seen since 2021. The website places eth at $587.83 with a market cap of $70.7 billion, which would be a drop of 77.5%.
Reaching Half of eth Market Cap
VacEck analysts have recently weighed in on the Solana vs. ethereum debate, predicting how high the former can go versus the latter. The analysis suggests that SOL's market capitalization It could reach at least half that of eth, which would put it at around $157 billion. In this case, the SOL price would be expected to rise above $330.
Analysts explained that this could happen due to increased activity on the Solana blockchain, which has surpassed ethereum. However, a major problem is the fact that institutional adoption of SOL has been slow. However, this does not erase the optimism that continues to surround the altcoin.
Featured image created with Dall.E, chart from Tradingview.com
