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Solana to $1,000? Ethereum's History Makes It Possible

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Fri, 28/06/2024 - 16:13
Solana to $1,000? Ethereum's History Makes It Possible
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Zhu Su, a founder of the infamous Three Arrows Capital hedge fund, recently highlighted the performance of the Grayscale Solana Trust, suggesting it could imply the future value of Solana to $1,000 per SOL.

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This projection is based on a comparison with the historical performance of Ethereum and the Grayscale Ethereum Trust (ETHE), used as a benchmark.

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Grayscale's trusts work by allowing investors to gain exposure to digital currencies through a traditional investment vehicle without the challenges of buying, storing and safekeeping digital assets directly. 

Each share of the trust represents a fraction of the cryptocurrency held by the trust, and the value of the shares can trade at a premium or discount to the underlying asset's market value.

"Every four years..."

Thus, four years ago, when Ethereum was trading at around $200, the Grayscale Ethereum Trust implied a value of $1,000 per ETH. This significant premium indicated strong investor confidence and future price expectations. 

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Source: TradingView

Ethereum's price eventually caught up with these projections, experiencing substantial growth in subsequent years. This pattern suggests a potential roadmap for Solana.

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The comparison of Solana to Ethereum's early days, when it was also emerging as a significant platform, is noteworthy. If SOL follows a similar trajectory, the implied value suggested by the Grayscale Solana Trust could be realized.

While past performance is not a guarantee of future results, the historical context offers a compelling narrative of Solana's growth prospects, making the $1,000 target a topic of interest in the community.

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