The Solana (SOL) price rebound after a recent dip below the $250 support level suggests strong bullish momentum. SOL’s recent popularity, recovery and the fees generated by the ecosystem far surpass that of Ethereum (ETH) and suggest that relative to ETH, SOL is mispriced. Typically, free markets do not remain inefficient for a long time, which means Solana could be due for a 3.34x surge to match Ethereum’s market cap of $378.64 billion.
Solana Price is Undervalued Relative to Ethereum
As noted, Solana price remains bullish and has emerged as a strong competitor to Ethereum, both in terms of popularity, revenue generation and investor interest. However, SOL remains wildly underpriced compared to Ethereum.
Solana Surpasses Ethereum in App Revenue
Despite SOL’s popularity and superior investor activity relative to Ethereum, ETH’s market cap hovers around $378.64 billion, while Solana’s market cap stands at $113.50 billion. This shows how largely undervalued Solana price is in relative terms.
Solana’s total app revenue reached $18.01 million in 24 hours, surpassing Ethereum’s $3.54 million during the same period. This shift marks a historic milestone for Solana, as it outperformed Ethereum in monthly app revenue generation for the first time.
This month, Solana’s protocol revenue exceeded Ethereum’s, further solidifying its growing dominance in the blockchain ecosystem. According to Artemis data, Solana generated $110.4 million in monthly revenue compared to Ethereum’s $103.1 million.
This trend signifies a narrowing valuation gap between the two networks, with market observers suggesting a potential re-evaluation of Solana’s pricing and market cap relative to its performance.
Solana Needs to 3.34x to Reach Ethereum’s Market Cap
Despite these strong fundamentals, Ethereum price hovers around $3,100 with a market cap of $378 billion while Solana hovers around $234 wtih $113.50 in market cap. Therefore, if the market reprices SOL to match ETH’s market cap, it could see a 3.34x increase, bringing it to an estimated $778
The above projection highlights Solana’s potential should it attain the same valuation as Ethereum, reflecting growing investor interest and the blockchain’s expanding ecosystem.
At present, Solana’s market cap remains substantially lower at $113.47 billion, marking a 0.30x gap compared to Ethereum. This disparity underscores the room for growth if Solana gains further adoption and network expansion.
The market dynamics suggest that if demand continues rising and institutional interest strengthens, Solana could experience a notable price appreciation, closing the valuation gap with Ethereum over time.
While the repricing might take months, the short-term outlook for Solana looks bullish with an imminent rally to the upside.
Solana Price Analysis
Solana price faces a sharp decline after hitting a new all-time high last week, struggling below $250. The SOL price today is at $234, reflecting a minor 2% increase in the last 24-hours.
The price remains within a consolidation phase, fluctuating between $230 and $250, key support and resistance levels. Mirroring similar corrections seen in Bitcoin and Ethereum. The ETH price is currently at $3,152, with a slight surge of 1% in the past day. SOL recently faced selling pressure after failing to break the 250 resistance, leading to a pullback toward $230.
The Relative Strength Index (RSI) currently stands at 43, suggesting neutral to slightly bearish momentum.
If the Solana price forecast maintains support above $230, a rebound toward $250 is possible. However, a break below this level could push the price toward the next major support at $200. On the upside, a confirmed breakout above $250 would expose the $300 level as the next target.
The price of Solana continues to showcase strong growth potential, with expanding adoption and rising revenue generation. If market conditions remain favorable, Solana could significantly close the valuation gap with Ethereum.
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