Ethereum
Solana at $1,000? The history of Ethereum makes this possible
Gamza Khanzadaev
Zhu Su sparked interest by suggesting Solana could hit $1,000, similar to Ethereum’s historic rise.
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Zhu SuFounder of the infamous hedge fund Three Arrows Capital, recently highlighted the performance of the Grayscale Solana Trust, suggesting that this could imply the future value of Solana at $1,000 per SOL.
This projection is based on a comparison with historical performance of Ethereum and the Grayscale Ethereum Trust (ETHE), used as a benchmark.
Grayscale Trusts work by allowing investors to gain exposure to digital currencies through a traditional investment vehicle without the challenges of directly purchasing, storing and custodiing digital assets.
Each share of the trust represents a fraction of the cryptocurrency held by the trust, and the value of the shares may trade at a premium or discount to the market value of the underlying asset.
“Every four years…”
So four years ago, when Ethereum was trading at around $200, the Grayscale Ethereum Trust implied a value of $1,000 per coin. ETHThis significant premium reflects strong investor confidence and expectations regarding future prices.
Source: TradingView
Ethereum’s price eventually caught up to these projections, experiencing substantial growth over the next few years. This model suggests a potential roadmap for Solana.
The comparison of Solana It is worth noting the significance of the time when Ethereum was emerging as a significant platform. If SOL follows a similar trajectory, the implied value suggested by the Grayscale Solana Trust could come to fruition.
While past performance is no guarantee of future results, historical context provides a compelling narrative of Solana’s growth prospects, making the $1,000 goal a topic of interest to the community.
About the Author
Gamza Khanzadaev
Financial analyst, trader and crypto enthusiast.
Gamza holds a degree in Finance and Credit with a specialization in Securities and Financial Derivatives. He also completed a Master’s program in Banking and Asset Management.
He wants to participate in covering economic and financial technology topics, as well as raising awareness about cryptocurrencies and blockchain.