Recently, many people have asked me about my opinion on SOL. Apparently, its recent performance has made everyone a little depressed.
The current price of Bitcoin is $60,000, SOL is about $130, ETH is $2,330, and BNB is $545. Comparing the declines at historical points: Bitcoin fell 17%, SOL fell 37%, ETH fell 43%, and BNB fell 25%. From this perspective, SOL's performance is not bad, second only to Bitcoin and BNB, and more resistant to declines than ETH! This actually explains a lot of problems
Currently, SOL's market value has reached $60 billion, ranking fourth, while BNB is $80 billion. Once upon a time, SOL's market value exceeded BNB, but from the perspective of status and market structure, BNB's stable third place is almost a foregone conclusion. Therefore, the upper limit of SOL's market value is basically the level of BNB. If Bitcoin, ETH, and BNB do not rise sharply, SOL will hardly have more room for growth because it is close to its own market value upper limit. Do you understand what I mean? Only when the entire market goes up, SOL will have the motivation to break through the current limit.
Furthermore, SOL has risen 25 times from the lowest point of 8 US dollars to the highest point. For a high-market-value project like SOL, the higher the market value, the more funds are needed to double. Therefore, even the strongest coins need to go through a period of shock and digestion to increase the overall market cost price and form a new consensus before there will be better opportunities for subsequent pull-ups.
If the bull market continues, I still believe that SOL will not disappoint. At present, it is the only public chain project that can compete with ETH in technology, ecology and other aspects, and even has the potential to surpass it. Those who can hold it will wait patiently for the market to pick up and the wind to come; if you can't hold it, then go and play with the hot small cottage coins!