As the summer of 2024 approaches, investors are closely examining potential opportunities within the cryptocurrency market, particularly focusing on the prominent Web3 cryptocurrencies Ethereum (ETH) and Solana (SOL).
Ethereum has recently gained traction with the approval of ETFs, boosting its market presence, while Solana boasts a Total Value Locked (TVL) of $4.795 billion, highlighting its growing ecosystem.
These digital assets have captured substantial attention due to their robust ecosystems, impressive year-to-date performance, and ongoing development activities. However, the prevailing market conditions have left investors deliberating which of these two cryptocurrencies will yield better returns.
To address this question, Finbold asked ChatGPT-4o which Web3 crypto, Ethereum or Solana, is poised to be the best performer in summer 2024. We used the following prompt with ChatGPT-4 to get the recommendation:
“Which cryptocurrency, Ethereum (ETH) or Solana (SOL), is better for investment in the summer of 2024, considering each coin’s key attributes such as year-to-date performance, volatility, development activity, community support, market trends, potential for growth, and overall stability? Provide a detailed analysis, comparing both cryptocurrencies based on these attributes to determine the objectively best option for potential short-term gains and long-term value. Justify your answer with relevant data and insights”
ChatGPT-4o: Ethereum (ETH) emerges as the better investment option for the summer of 2024
ChatGPT-4 identified Ethereum as the superior investment option for summer 2024 primarily due to its more stable market presence, significant development activity, and recent ETF approval, which are likely to drive further institutional interest and long-term growth.
While Solana (SOL) shows impressive potential, its higher volatility and shorter track record make it a riskier investment compared to Ethereum.
Key attributes of ETH for summer investment. Source: ChatGPT-4o / Finbold
Objective recommendation for summer investment. Source: ChatGPT-4o / Finbold
Ethereum price analysis
ETH 7-day price chart. Source: Finbold
Based on a detailed analysis, Ethereum emerges as the superior investment option for both short-term gains and long-term value in summer 2024.
Currently trading at $3,760.20 with a year-to-date gain of 65%, Ethereum’s recent ETF approval and robust ecosystem position it favorably against Solana, which is trading at $165.60 with a year-to-date gain of 62%.
For short-term investors, Ethereum’s potential bullish trend makes it a safer choice. For long-term investors, Ethereum’s stability, extensive development activity, and strong community support offer significant growth potential.
However, diversifying with a smaller portion in Solana can provide additional exposure to its high growth potential, balancing risk and reward.