Raoul Pal: Solana, Cardano & 2 Other Layer-1 Projects Could Go Parabolic
According to market strategist and the CEO of Real Vision, Raoul Pal, Cardano (ADA), Solana (SOL), Avalanche (AVAX) and Terra (LUNA) will go crazy during this bull cycle, but they need Ethereum (ETH) to perform to catalyst their rallies.
In a Real Vision talk with Ash Bennington, Pal said that there is a possibility that Ethereum goes through an extended bull cycle all the way to June of 2022, calling a potential top for ETH at $40,000.
If ETH price is going to go grazy, the market strategist predicts that other leading layer-1 crypto assets, such as ADA, SOL, AVAX and LUNA could go even crazier.
“I think almost certainly till March but possibly to the summer, which will give us higher prices and a different cycle structure than we’ve seen before. I could be wrong. I’m not betting the entire ranch on it. But that’s how I think it plays out. And if I’m right about the network adoption, then these other layer-1s like Solana, Terra, Avalanche, Cardano, and some of the others are going to be super explosive.”
According to Pal, however, betting on the massive bull runs of the above mentioned altcoins might be much riskier bet than Ethereum.
“But in a risk-reward basis, they’re riskier. They’re not as deep a network as Ethereum is. Ethereum to me remains the best bet in the world from a risk-adjusted standpoint.”
The Real Vision CEO suggests the current crypto bull market could cool down, if Ethereum begins push closer to Bitcoin’s market cap.
“My guess is it gets pretty close to Bitcoin’s market cap. So, I think it probably in the end somewhere doubles in relative valuation versus Bitcoin. I don’t think the market quite expects that. But maybe that short period of the flippening would be the end of the cycle, when everybody punches the air, all the Bitcoin guys get pissed off because Ethereum outperformed, then we get a larger correction.”
At the time of writing Ethereum’s market cap stands at $556.7 billion, and Bitcoin’s at $1.23 trillion.
