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After leading the altcoins rally for weeks, Solana (SOL) appears to be taking a breather possibly to allow fundamentals to catch up while it collects liquidity ahead of the next move to above the $50 level.
The token flipped Cardano (ADA) to become the seventh-largest crypto amidst the rally that pushed its trade to $46.12 highs seen last in August 2022. Solana boasts $17.35 billion in market capitalization backed by a 22% increase in the 24-hour trading volume to $1.1 billion.
Asset Manager VanEck Massive Prediction For Solana
One of the leading asset managers in the world, VanEck, which has an interest in operating a Bitcoin spot exchange-traded fund (ETF) believes Solana could be at the center of global transactions in the near future. The firm estimated that the number of all transactions made globally each year is approximately 1 trillion or 629 million, excluding China while unpacking the competitive smart contracts token’s potential.
“Therefore, we estimate the TAM revenue opportunity for payments on Solana will be between $666M and $3.3B, as the average fee on Solana will likely be between $0.05 and $0.001,” VanEck wrote in the report.
However, the AUM global investment manager added that the impact of Solana cannot only be quantified using transactions because the platform has the potential to “transcend the payment revenue opportunity.”
In other words, as payments grow, they will attract more users, decentralized applications (dApps) developers, and institutional attention. This will compel “businesses… to deploy value-added services to payments, such as banking, asset management, identity, marketing, and social media.”
Read Also: Solana Price Prediction: Is SOL Going To $50? Here’s What You Should Know
The prediction gets even better with VanEck saying that if Solana adopts Ethereum’s revenue distribution model, especially for payments and related assets, payments would count for only 5% of the platform’s revenues.
“Extrapolating this, we can find that the total revenue opportunity for Solana could be between $13B and $66B vs. Our base case for ETH revenues of $50B by 2023,” VanEck added.
BREAKING: $77.8B AUM GLOBAL INVESTMENT MANAGER @vaneck_us ESTIMATES THAT THE TAM REVENUE OPPORTUNITY FOR PAYMENTS ON @solana WILL BE BETWEEN $666M AND $3.3B, AS THE AVERAGE FEE ON @solana WILL LIKELY BE BETWEEN $0.005 AND $0.001 pic.twitter.com/Ndotpj7kqz
— DEGEN NEWS 🗞️ (@DegenerateNews) October 7, 2023
Solana Price Prediction: Will SOL Resume Uptrend Or Pullback?
The Moving Average Convergence Divergence (MACD) indicator upholds a bullish thesis in Solana price. As the momentum indicator rises above the neutral zone, the odds flip to favor a continued uptrend toward $50.
Solana is also sitting on top of key bull market indicators. These include the 50-week Exponential Moving Average (EMA) (red) and the 100-day EMA (blue).
If bulls hold the price above $40, SOL price will have a greater chance of triggering another climb because traders would be inclined to buy the token, betting on gains targeting $50.
However, losing the immediate support at $40 would imply that bulls are losing their grip. Therefore, declines are likely to follow and sweep liquidity at $32.27. If push comes to shove, we could see losses extend to the support provided by the 50-week EMA at $27.86.
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