Macro expert and Real Vision CEO Raoul Pal says Solana (SOL) will likely outperform Ethereum (ETH) this cycle, but one altcoin could potentially perform better.
According to Pal, one of the top 20 altcoins by market capitalization and a relatively new entrant to the layer 1 sector is likely to outperform Bitcoin (BTC) as well as Solana and Ethereum.
“My guess is that ETH will start to outperform BTC for the remainder of the cycle, but will underperform SOL as SUI is in the ultimate performance phase of adoption, and SOL will underperform SUI early > proven.”
Sui (SUI) is trading at $2.32 at the time of this writing, up about 17% from last week.
The prices of Bitcoin, Ethereum, and Solana are $76,304, $2,949, and $205, respectively, up 9%, 16%, and 21% over the past week.
Pal says Ethereum’s outperformance compared to Bitcoin will be driven in part by the fact that the cryptocurrency cycle has entered a risk-taking phase. The macro expert also said that the cryptocurrency industry is likely to enjoy a more friendly regulatory environment after Donald Trump is elected as the 47th US president.
“Now that regulation of cryptocurrencies is likely to improve dramatically, two key potential developments are possible:
1. Utility tokens in decentralized finance (DeFi) begin providing returns or rewards to the underlying protocols that create network value. Most of them are in ETH.
2. Traditional Finance (TradFi) will begin to build larger use cases on the most tested and adopted chains. Think of ETH (and Layer-2) as the Microsoft of web3. No one gets fired for using it.
These two factors alone could dramatically revalue ETH and offset the current retail adoption of other chains, while ETH yields would attract more institutions. Yields can be used to build other financial products, such as guaranteed funds. “As regulations improve, this activity will explode.”
Don’t miss a beat – subscribe to get email alerts delivered straight to your inbox
Check Price Action
follow us XFacebook, Telegram
Daily Hodl Mix Surfing
 
Disclaimer: Opinions expressed on The Daily Hodl do not constitute investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrencies, or digital assets. Please note that your transfers and transactions are entirely at your own risk and you will be responsible for any losses you may incur. The Daily Hodl does not recommend the purchase or sale of any cryptocurrency or digital asset, and The Daily Hodl is not investment advice. The Daily Hodl engages in affiliate marketing.
Image created by: Midjourney