Solana at $1,000? Ethereum’s story makes it possible

Gamza Khanzadaev

Zhu Su sparked interest by suggesting Solana could hit $1,000, similar to Ethereum’s historic surge

Read U.TODAY on

Google News

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 the historical performance of Ethereum and the Grayscale Ethereum Trust (ETHE), used as a reference.

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 holding digital assets.

Each share in 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 ETH. This significant premium reflects strong investor confidence and expectations for future prices.

Source: TradingView

Ethereum’s price eventually caught up with these projections, experiencing substantial growth over the following 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 in the community.

About the Author

Gamza Khanzadaev

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master’s program in banking and asset management.

He wants to help cover economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.

Source