After Solana rose to 1,000% in 2023 and re-entered the top 10 cryptocurrencies by market capitalization, it was once again pitted against Ethereum. This was further driven by the fact that Solana saw its blockchain business surpass that of Ethereum, and even generate more revenue at once. However, one area where Ethereum continues to outperform Solana is in its market capitalization. With Solana still well below Ethereum in this category, how much will a SOL cost if it ultimately reaches the market cap of ETH?
Solana with Ethereum market capitalization
Currently, Solana’s market cap stands at $70.3 billion, compared to Ethereum’s $315 billion at the time of writing. This means that the market capitalization of ETH is more than four times that of SOL. This shows that SOL still has a way to go before it can catch up with ETH, but the gap is not so big that it is impossible, especially when it comes to cryptocurrencies.
Using data from MarketCapOf, which compares the market cap of two cryptocurrencies and then shows what one would be like to the market cap of the other, we can see how high the SOL price would be if it reached the market cap of ETH, and it is substantial.
According to the website, if Solana’s market capitalization reached $315 billion like Ethereum, its price would exceed $600. More precisely, that would be $670.83, which is a 4.47x increase from here, or a 447% increase. This would also push it above Tether’s BNB and USDT in terms of market capitalization, making it one of the top three cryptocurrencies.
On the other hand, if Ethereum’s market cap were to fall below Solana’s market cap, it would cause the price to drop to levels not seen since 2021. The website values ETH at $587.83 for a market capitalization of $70.7 billion, which would represent a crash of 77.5%.
Reaching half of the ETH market cap
VacEck analysts recently weighed in on the debate over Solana and Ethereum, predicting how far the former can go against the latter. The analysis suggests that SOL’s market cap could reach at least half that of ETH, putting it around $157 billion. In this case, SOL price is expected to exceed $330.
Analysts explained that this could happen due to increased activity on the Solana blockchain, which has overtaken Ethereum. A major problem, however, is that institutional adoption of SOL has been slow. However, this does not erase the optimism that continues to surround the altcoin.
Featured image created with Dall.E, chart from Tradingview.com
