James Mullarney, the host of the very popular YouTube channel “InvestAnswers,” recently spotlighted the increasing institutional focus on Solana (SOL), a blockchain network that rivals Ethereum (ETH). Mullarney underscored that Solana possesses multiple attributes that could drive its price higher.
According to a report by The Daily Hodl, Mullarney showcased a chart that compared Solana and Ethereum across 19 distinct metrics, such as block time, average transaction fees, and transactions per second (TPS). According to this chart, Solana has the upper hand in several categories, notably outclassing Ethereum in aspects like block time and TPS.
While Ethereum is generally viewed as a more stable and well-established investment, Mullarney observed that Solana has attracted more institutional investment in 2023. He mentioned that although large-scale investors typically lean towards Ethereum due to its longstanding credibility, this year has witnessed a pivot towards Solana.
Discussing the market capitalizations of both cryptocurrencies, Mullarney noted that Solana’s market cap stands at $8.2 billion, ranking it as the 10th largest digital asset. In contrast, Ethereum boasts a market cap of $196 billion, solidifying its position as the second-largest digital asset. He questioned whether Ethereum’s significantly larger market cap truly represents a 20-fold advantage in value over Solana.
Mullarney also emphasized that Solana’s smaller market cap offers it a greater scope for price appreciation compared to Ethereum.
In his final remarks, Mullarney indicated that Solana presents a compelling investment opportunity at its current pricing, although he did advise caution due to inherent risks. He disclosed that his Solana portfolio is roughly one-third the size of his Ethereum holdings but expects it to grow faster.
The InvestAnswers host said:
“This is the magic question though. When you break it all down is Ethereum 20 times better than Solana? And the answer in my opinion is no. But there is risk with Solana, therefore you allocate accordingly. My Solana bag is about a third the size of my ETH bag but it will grow and I think it’ll grow faster … But that little skinny green sliver on the right is the market cap of Solana versus the market cap of ETH. And the ETH market cap is 20 times higher, which is stunning. And I look as an investor for relative value. Solana is a screaming buy at this price.“
Featured Image Via Midjourney