Solana, one of the popular cryptocurrencies, may see significant growth at the end of 2024 due to potential ETF launches and substantial corporate investments.
Growth Potential of Solana
According to Bitwise's CIO Matt Hougan, Solana could see an 'epic end of the year' driven by expected ETF launches and a $1.65 billion commitment. Hougan noted that interest in Solana could mirror the situation that previously fueled Bitcoin and Ethereum's growth. He suggested that when demand exceeds supply, prices generally rise.
Historical Examples of Crypto Growth
Hougan also cited historical instances of Bitcoin and Ethereum's growth, stating that Bitcoin surged from around $40,000 in January 2024 to a new all-time high of nearly $125,000. Ethereum nearly tripled in price between April and August this year. During these periods, there was a surge in demand for cryptocurrencies, which reaffirmed the law of supply and demand.
Need for a Catalyst for Further Growth
However, Hougan cautioned that corporate purchases of SOL and possible ETF launches may not be sufficient to push the altcoin's price to new highs. He emphasized that investors need to perceive a fundamental reason to be interested in these vehicles. The major attraction for Solana lies in its much higher speeds and significantly lower fees compared to both Bitcoin and Ethereum.
In conclusion, while the outlook for Solana appears optimistic, achieving new price highs will require fundamental reasons that foster investor interest.
