Serious Question: What the Heck Is Going On With Solana?

TL;DR

• There havn’t been any large shifts in Solana’s fundamentals, or any loopy bulletins that will juice its narrative prior to now few weeks, but SOL goes up and up.

• Solana had a whooole lot extra floor to get well than Ethereum. Even now, after SOL has exploded – it is nonetheless down 68% from its earlier highs, whereas ETH is barely down 53%.

• If Ethereum have been to go up 15%, it could add the equal of Solana’s whole market cap, to its personal.

Full Story

What the heck is happening with Solana?

It simply…it simply retains on climbing.

However there hasn’t been any large shifts in its fundamentals, or any loopy bulletins that will juice its narrative prior to now few weeks…

So what provides?

(And why is not Ethereum transferring alongside it?)

Once we discover ourselves asking these sorts of questions, we divert to podcasts and articles, the place individuals a lot smarter than us give their two cents.

Right here’re three causes that made us go ‘oh, yep – that is sensible’:

1. Solana has 10x’d from its bear market lows (going from ~$8 in Jan, to ~$80 at this time) whereas Ethereum has solely 2x’d. How does that work?

   Nicely, Solana completely TANKED (shedding 96.8% of its worth, going from $250, to $8) because of its affiliation with FTX. Whereas Ethereum solely dropped 77.65% within the bear market, from ~$4.7k to ~$1.05k.

   Level is: Solana had a whooole lot extra floor to get well. Even now, after SOL has exploded – it is nonetheless down 68% from its earlier highs, whereas ETH is barely down 53%.

2. Ethereum’s complete market worth is WAY larger than Solana’s ($257B vs. $34B), which suggests it takes much less funding to push SOL’s worth up.

   For context: if Ethereum have been to go up 15%, it could add the equal of Solana’s whole market cap, to its personal.

3. To that time….there’s more cash to be made in Solana proper now.

   If ETH positive factors $34B in complete market worth, you make 15% in your funding.

   If SOL positive factors $34B in complete market worth, you actually double your cash.

   So whereas Solana continues to be seen because the riskier wager, the possibility of a bigger repay is attractive a better share of investor cash in the mean time.

Very cool!