Based on a recent report by on-chain analyst Delphi Digital, the cryptocurrency researcher indicates a number of similarities between Ethereum's (ETH) DeFi Summer of 2020 and what Solana (SOL) might be up to in 2024.
"Safest bet" in non-EVM chains: Analyst on Solana (SOL)
After a massive rally in 2020 and a painful drawdown, in the next bull market, Solana (SOL) might reemerge from the ashes and repeat the performance of Ethereum (ETH). Analyst and podcaster Sal Qadir shared such conclusions with his Twitter followers yesterday, Aug. 11, 2023.
Based on the four-year-cycles approach, the current performance can be compared to that of Q4, 2019, the analyst admits. At the same time, given the fact of the DeFi activity increase on Solana (SOL), the blockchain might be entering its version of Ethereum's 2020 DeFi Summer right now.
Also, in terms of total value locked in DeFi protocols, Solana (SOL) is an undisputed leader amid all L1 blockchains outside the Ethereum Virtual Machine (EVM) ecosystem.
Solana's (SOL) liquid derivatives staking ecosystem has huge room for growth. Based on the ratio between all SOL staked and the TVL of Solana-based LSTs, Qadir foresees "billions of capital" that can be injected once SOL liquidity providers start seeking additional yield.
As covered by U.Today previously, Solana's (SOL) price might be due for an amazing comeback in 2023, based on a number of technical analysis indicators.
Flashbots, NFTs might contribute to Solana (SOL) success
Besides TA triggers, Solana's (SOL) potential growth might be driven by a couple of technical advancements that either have been deployed to the protocol or might be introduced in the coming months.
For instance, new-gen Solana DeFis by Jito Labs might address the problems of MEV in more advanced ways compared to mainstream Ethereum-centric protocols.
Also, with data compression scaling technology, the minting of non-fungible tokens on Solana (SOL) might be almost 3,000x cheaper than on Polygon (MATIC), Delphi's data says.