Solana (SOL) surpassed Ethereum (ETH) in Actual Economic Worth (REV) as each chains achieved new income all-time highs this Monday. With that, market contributors speculate and predict SOL’s price potential for what might be “the biggest crypto bull run ever.”
Actual Economic Worth is a crucial elementary evaluation metric that offers insights right into a blockchain’s demand and use. It’s arguably a greater metric than active addresses, as it’s costlier to control however nonetheless requires warning.
On November 11, Solana and Ethereum reached a each day income ATH of $12.1 million and $11.2 million, respectively. Weekly, the networks made a complete of $48.7 million and $39.0 million, respectively, consolidating the third consecutive week of Solana producing extra income than Ethereum – as Dan Smith, Blockworks Analysis analyst, reported.
Basically, Blockworks Analysis calculates REV by summing up the whole community charges with the Most Extractable Worth (MEV) suggestions. Which means that Solana customers have been producing extra economic worth for its validators regardless of Ethereum having extra market capitalization.
Elementary evaluation utilizing REV plus market cap
On that observe, analyzing REV and different elementary metrics might assist traders and merchants construct price prediction fashions. These indicators can be utilized as a benchmark for evaluating totally different chains, forecasting potential development, and recognizing worth asymmetries.
Particularly, Santiago R Santos, founding father of Inversion Capital and Ethereum’s CryptoPunk #9159 proprietor, commented on the matter this Tuesday. Santos questioned the market capitalization asymmetry between ETH and SOL, with the latter having lower than one-third of the previous.
“Solana is 30% of Ethereum’s market cap and I can’t consider a compelling cause why it shouldn’t be price not less than 100%.”
– Santiago R Santos
Solana (SOL) price prediction
In response to the investor, Solana’s truthful worth could be the identical as Ethereum, at roughly $385 billion.
This may imply a price of $815 per token, contemplating the present circulating provide of 472 million SOL. If utilizing Solana’s absolutely diluted worth, having Ethereum’s market cap would imply a price of $653 per SOL.
As of this writing, Solana is buying and selling at $207.60, up 104% year-to-date. Due to this fact, a rally to those potential costs would imply positive aspects in a spread between 214% and 292%.
Solana (SOL) year-to-date price chart. Supply: Finbold
Nonetheless, there isn’t any assure that Solana will ever attain the identical capitalization of Ethereum at the moment has. Furthermore, Ethereum’s market cap itself will change extra time, requiring the evaluation to adapt as issues develop.
Within the meantime, Solana has gained the highlight after surpassing BNB Chain (BNB) to become the fourth most valuable cryptocurrency. Good cash merchants have additionally proven optimism about Ethereum, buying over $34 million of ETH, as Finbold reported yesterday.
