- Real Vision CEO identifies Solana as the cryptocurrency with the highest potential in 2024 and highlights the integration with Visa’s pilot for blockchain transactions.
- Solana faces a turbulent couple of weeks after FTX was allowed to sell its $1.1 billion holdings of Solana.
Global macro investor Raoul Pal has shared his crypto forecast for 2024. In his analysis, he identified Solana (SOL) as a favorite to perform exceptionally in the upcoming year. The analyst began by sharing an overview of the crypto market performance in 2023. Pal notes that the market has witnessed a 50-100 percent increase this year. However, the positive performance has been overshadowed by the relative calmness experienced since April.
For the last couple of months, the market has witnessed little price movement casting a bearish image. For SOL, in particular, the altcoin reached a 2023 high in July when it hit $27. It has since dropped as low as $14 but seems to have found stability in the $18 to $21 price range. Mirroring Bitcoin (BTC), this is a price pattern that can be observed in a majority of coins. It is also a trend observed in the traditional markets.
Pal blames the market stagnance on a liquidity crunch caused by central banks’ monetary policies. However, it seems the economy is showing signs of a recovery with reported rising unemployment, and declining inflation. In the coming year, Pal expects central banks to halt rate increases, pause quantitative tightening, and even rate cuts. This will not only boost traditional markets but also the crypto market.
Pal Backs Solana (SOL) to Lead the Crypto Market
Although SOL has faced highs and lows in 2023, Pal backs it to perform exceptionally well in 2024. The market analyst highlights the recent integration with Visa’s pilot for blockchain transactions. Earlier in the month, Visa announced a partnership with Solana for its stablecoin settlement pilot, highlighting Solana’s advanced technological advantages. Solana’s unique attributes, like its parallel transaction processing and cost-efficient transaction fees, make it stand out in the blockchain realm.
Pal further discussed the collaborative and inclusive ecosystem. Not only are developers actively working hard to make the network a success but the community and users are collaborative and promoting the ecosystem. Even in a volatile period, this has ensured that SOL delivers exceptional performance.
Although the analyst is optimistic of a positive performance in 2024, investors are wary of the last couple of months of 2023. On Wednesday, September 13, the Delaware Bankruptcy Court approved the sale of FTX digital assets. Crypto exchange FTX holds more than $3.4 billion with a majority of its holdings in Solana (SOL), roughly $1.16 billion.
But disputing ongoing FUD that the exchange will dump its SOL holding in a matter of days, experts have clarified that the selling of tokens will be done periodically over weeks. Popular crypto analyst Michael van de Poppe explained that FTX has the ability to liquidate up to $200 million worth of assets on a weekly basis for their respective clients, potentially mitigating their liabilities.
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