Solana prints big gains when it moves. However, at a price of around $200 and $100 billion market capitalization, is it a good idea to buy SOL in 2025?
In a YouTube analysis, “Gerhard – Bitcoin Strategy,” crypto expert Gerhard provides an in-depth examination of Solana’s current market position and future potential. His analysis reveals several key insights about the cryptocurrency’s performance and prospects.
According to Gerhard’s analysis, Solana has recently experienced a notable price decline, dropping 15% over the past month. This performance places it in an interesting position relative to its peers, with Ethereum experiencing an even steeper decline while Bitcoin showed more resilience. However, Gerhard notes that beneath these surface-level price movements lie more compelling developments.
What you'll learn 👉
Solana Staking Dynamics and Platform Growth
One of the most significant factors Gerhard highlights is the stability of Solana’s Total Value Locked (TVL) despite recent price volatility. This stability can be largely attributed to Binance’s staking initiatives, which offer an attractive 8.5% Annual Percentage Rate (APR) for Solana staking.
Currently, Gerhard points out that only 6% of Solana’s total supply is staked, creating a stark contrast with Ethereum’s 28% staking ratio.
Gerhard’s analysis takes a particularly interesting turn when comparing Solana to Ethereum. He observes that Ethereum’s staking appears to be reaching a plateau, with potential for slight declines ahead.
In contrast, Solana relatively low staking ratio suggests significant room for growth. This dynamic, Gerhard argues, could drive Solana’s price appreciation relative to Ethereum in the coming months.
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Solana Ecosystem Development and SOL Transaction Metrics
The platform’s underlying strength becomes apparent in Gerhard’s examination of usage metrics. He notes significant scaling in transaction volume, wallet activity, and success rates over the years.
Particularly noteworthy is the recent surge in activity driven by the “pump.fun” ecosystem, which has brought increased attention to meme coins and AI platforms within the Solana network.
Gerhard places these developments within a broader market context, noting that the current cryptocurrency market shows characteristics of stagnation similar to previous bear markets. He explains that Bitcoin’s current market dominance suggests we’re not yet in an aggressive altcoin season, which historically has followed significant Bitcoin bull runs.
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Is Solana (SOL) Still a Smart Buy?
In concluding his analysis, Gerhard suggests that while Solana may not deliver 100x returns as a large-cap cryptocurrency, it presents compelling advantages over Ethereum, including lower fees and potential ETF-driven demand.
He emphasizes the importance of monitoring influential crypto figures like Kyle Chessie and Alex Becker, whose investment patterns often signal emerging opportunities in the space.
Gerhard wraps up his analysis by emphasizing the importance of careful market evaluation while maintaining awareness of key influencer activities and broader market trends. His overall assessment suggests that while Solana may not replicate its historical explosive growth, its fundamental strengths and growing ecosystem make it a cryptocurrency worth watching in the current market environment.
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