IMPORTANT POINTS:
- Raoul Pal forecasts an uptrend for Solana (SOL) against Ethereum (ETH).
- Global adoption of cryptocurrencies will drive the outperformance of other financial assets.
- Bitcoin-based ETF approval could further lift cryptocurrency markets.
Real Vision CEO Raoul Pal argues that Solana (SOL) is likely to continue its upward trend against its smart contract rival Ethereum (ETH).
In a recent blog post, the former Goldman Sachs executive claims that he is paying special attention to the Solana vs. Ethereum (SOL/ETH) pair.
According to Pal, he sees Solana outperforming Ethereum after the pair broke a downtrend.
“Lastly, SOL is up more than 30% in the month (+150% YTD!) and has broken the downward trend against ETH. This is something we have been waiting for a long time and we believe that this trend will continue to rise.”
Solana is trading at $23.27 at the time of writing, down more than 5% over the last 24 hours.
In a new strategic session, the macroeconomics guru argues that cryptocurrency markets in general are likely to outperform other asset classes in the current cycle, citing broader global adoption and continued devaluation of fiat currency.
Pal also mentions that the approval of an exchange-traded fund (ETF) based on the spot price of Bitcoin (BTC) will likely propel the cryptocurrency markets to greater heights.
“[Cryptocurrencies] outperform everything in this type of cycle. Like technology, it’s driven by the devaluation of central banks, of the fiat currency market, particularly the world’s reserve currency of the dollar, but all of them together really.
Furthermore, it is driven by the secular trend. The adoption trend of cryptocurrencies is huge. We now have 421 million wallets. It keeps increasing every year. Even last year in a bear market, it grew 40%. So, in the next few years, we’ll probably get that number up to a billion pretty quickly.
So we have a big change coming up. The adoption continues. We have central bank digital currencies to come, which, like it or not, is still an adoption of blockchain technologies.
We also have payment channels and all that going on. Also, people are looking to tokenize the prices of assets like bonds and the like. Therefore, the financial world is moving to the blockchain, which is a central thesis of mine.
On top of that, we now have the on-ramps for the average bettor, which is the ETF. I think ARK (Invest) takes first on August 13, 18 or whatever. That will open the floodgates. I think prices will be going up anyway, my forecast calls for much higher prices.”
