A widely followed crypto strategist believes that one Ethereum (ETH) competitor with high institutional interest has massive upside potential.
The anonymous host of InvestAnswers tells his 447,000 YouTube subscribers that Solana (SOL) has key advantages over ETH that could send its price soaring.
“But the real difference is how much better by what magnitude is Solana. And if you look here, red is Solana and the deltas, and then blue is ETH. You can see it smashes it. These things are on a log scale on the left. And that is the big difference. Looking at all of the key factors, they have 10 wins each, but in reality, where Solana wins, it wins by a lot more. Where Ethereum wins, it only wins by a fraction.”
His chart shows 19 different categories comparing Solana to ETH. Solana beats ETH in such categories as block time, average fee and the maximum number of transactions that a blockchain can carry out in a second, also known as transactions per second (TPS).
The trader says that ETH is considered more established than Solana and a safer bet for investors.
However, he notes that more institutional money has flowed into Solana so far in 2023.
“Ethereum is safe. It’s established. It has been around for a long time. The risk is very low. When big money comes in, they’ll go into ETH first, although we have seen so far this year in 2023 institutional money is going into Solana more so than Ethereum.”
According to the trader, since Solana’s market cap is much smaller than Ethereum’s, SOL has a greater opportunity for a larger price increase than ETH.
Solana is the 10th-ranked digital asset by market cap with a market cap of $8.2 billion. Ethereum is the second top digital asset by market cap with a market cap of $196 billion.
“This is the magic question though. When you break it all down is Ethereum 20 times better than Solana? And the answer in my opinion is no. But there is risk with Solana, therefore you allocate accordingly. My Solana bag is about a third the size of my ETH bag but it will grow and I think it’ll grow faster.
But that little skinny green sliver on the right is the market cap of Solana versus the market cap of ETH. And the ETH market cap is 20 times higher, which is stunning. And I look as an investor for relative value. Solana is a screaming buy at this price.”
Solana is trading for $20.28 at time of writing, up 4% in the last 24 hours.
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney