Most venture capital and hedge funds expect Solana (SOL) to reach at least $600 during this bull cycle, according to to MV Global’s “Q4 2024 Crypto Investment Manager Survey”.
Nearly a third of respondents believe SOL will surpass the $600 cap, while 23.2% view this price range as the asset’s all-time high. The same percentage sees SOL stuck between $150 and $300 in this bull cycle, which survey participants predict will happen in the second half of 2025.
A liquid funds analyst said that SOL and Ethereum (ETH) will outperform Bitcoin (BTC) during this cycle, although SOL will have much greater upside potential. He added:
“It’s a simple way to capture the benefits of multiple verticals like DePIN and Memecoins.”
Meanwhile, a venture fund analyst said SOL’s outperformance against ETH was “so consensus it’s scary.” Additionally, 75% of survey participants believe SOL will outperform crypto exchange-traded funds (ETFs) during this cycle.
Not optimistic enough
The survey surveyed 76 leading liquid funds and venture capital allocators in the crypto market. Half were venture capital funds and 21.7% were hedge funds. About 56% of participants manage between $10 million and $50 million.
MV Global pointed out that the “lack of upside conviction” was surprising, particularly in the case of Bitcoin. Most respondents believe BTC will peak between $100,000 and $150,000, which is lower than the predictions of institutional researchers such as VanEck and Standard Chartered.
The last six months of sideways action are the key factor in easing investor confidence, with the recent uptrend far less appreciated.
The survey finds that almost 57% of respondents believe Bitcoin will peak in 2025, and 45.7% of them predict a new all-time high in the second half of next year.
“Alternative season” for some
The survey also asked the 76 participants about the possibility of a massive increase in altcoin prices during this cycle. Nearly 70% of respondents strongly believe in an alt season, but only for a few select altcoins.
A major venture capital partner told the investigation:
“There are 100 times more tokens than last cycle. It’s really hard to see all of these moving into a BTC beta like they did before.
Tokens tied to the artificial intelligence (AI) narrative are among respondents’ favorites, with 43% keeping an eye on this altcoin vertical.
The Decentralized Physical Infrastructure Network (DePIN) came in second place, with 14.3% of participants expressing interest. Native tokens for DeFi applications are considered a good investment by 11.4% of wealthy asset managers.
On the other hand, gaming is the least appreciated altcoin sector, as 27.5% consider it the “worst performer” in this cycle.
A liquid fund managing partner said:
“You don’t need crypto companies to create a game or a game studio. Integration is the best way forward. Don’t try to create the next Call of Duty, but have Call of Duty embrace crypto.
Tokens native to Layer 2 blockchains are also among the least favored digital assets among survey participants, with 24.6% considering it a potentially underperforming sector.
Finally, asset managers of wealthy funds remain cautious about meme coins. Although 43% reported investing in tokens in this sector, only 10% used more than $10,000 of their respective funds to gain exposure to this narrative.
