Solana Price Prediction: Can SOL Hit $200 and Overtake Ethereum in 2024?

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As September closes with a rally hope in October, the cryptocurrency market is showing signs of recovery, breaking its usual bearish trend for the month. With Bitcoin climbing back above $66,000 and top altcoins, including Solana, surpassing key resistance levels of $155, there’s growing excitement about a potential altcoin season. 

Looking at the current market scenario, it is expected that Solana could easily surpass Ethereum, especially with Altcoin Daily’s recent analysis suggesting that Solana’s network upgrades and scalability improvements position it as a serious contender. But does this idea hold up under scrutiny? 

Let’s dive in!

Solana’s Rise vs Ethereum’s Lead

Solana’s price performance and market cap growth have been impressive in 2023, causing some to wonder if it could eventually challenge Ethereum’s dominance. According to Altcoin Daily analysts, Solana has outperformed Ethereum in several key metrics, such as decentralized exchange (DEX) trading volumes and validator rewards. Yet, Ethereum still leads in the DeFi and NFT sectors, with a more robust ecosystem and larger developer community.

On-Chain Metrics: A Competitive Race

Kyle Sani of Multicoin Capital highlights that Solana’s on-chain metrics, particularly validator rewards, are increasingly competitive with Ethereum. At times, Solana has even surpassed Ethereum in economic value generated. However, Ethereum’s Layer 2 solutions maintain its broader dominance.

While Solana has made strides, especially in stablecoin transactions, handling about half of Ethereum’s volume, Ethereum still leads overall. Analysts point out Solana’s innovations, like token extensions and confidential transfers, as attractive to institutional investors. Furthermore, Solana’s upcoming Fire Dancer update by Jump Trading aims to significantly boost network speed and scalability, enhancing its growth potential.

VanEck’s Market Vector reports reveal that Solana boasts approximately 1,300% more active users and processes 3,000% more transactions than Ethereum, showcasing its growing acceptance in the crypto space. However, Ethereum still dominates with 56% of the Total Locked Value (TVL) in the market, while Solana holds only 6%. The competition is fierce, particularly with Ethereum’s ETFs gaining traction, though they have yet to reach their full potential. In contrast, Solana’s ETFs remain largely theoretical at this stage. 

Can Solana Really Flip Ethereum?

While Solana is gaining ground, flipping Ethereum seems unlikely in the short term. Ethereum’s massive ecosystem and network effects still provide a substantial lead. On-chain analyst Ali Martinez predicts Solana could see a potential 900% surge in the coming months. Whereas, Ethereum could extend its current pullback and potentially surpass the $3,500 mark soon.

At present Solana is poised to test significant resistance levels, potentially reaching $181 if bullish sentiment continues, with a chance to hit its yearly high of $209. If bearish trends take hold, SOL could retest its support level at $155 and potentially drop to $127.

Where do you see SOL next?