Ethereum and Solana are two of the most mature smart contract blockchains today. Both networks’ native properties have performed amazingly since their respective launches.However, as the ongoing cryptocurrency bear market continues, investors may consider switching SOL to ETH or vice versa. But is it a good deal? This article will assess the latest developments in these two crypto assets, asking if now is the time for a swap.
While most crypto assets have struggled this year, SOL has had a particularly tough 2022. Solana’s native asset opened at around $170 on January 1, 2022, and is now trading at just under $12.
However, the bullish development continues with Aleph.im’s recent launch of a decentralized open-source transaction indexing solution for the network. The protocol enables individual projects to query the blockchain’s transaction history without access to powerful (and expensive) computing hardware.
Similarly, Metaplex’s recently revealed NFT compression reduces storage and minting costs for creators and collectors alike. Solana’s NFT space is already one of the most active in the crypto industry, and the upgrade should make the network an even more attractive hub for tokenizing artwork, in-game items, and other forms of media.
SOL Price Prediction
The bullish development of Solana has expert price analysts optimistic about the future price of SOL. Priceprediction.net estimates that the crypto asset will reach a maximum value of $23.09, $34.49, and $51.34 in 2023, 2024, and 2025, respectively. That would represent gains of 92%, 187%, and 328% at today’s prices.
More bullish on the price of SOL is Gov.capital. The resource’s price analysts estimate the crypto asset will rise to $218 next year and $1,332 by 2027. If such a price materialized, SOL would be up 1,717% and 11,000%, respectively, from today’s price.
The development of Ethereum
The dominant smart contract network ethereum has also seen several recent bullish developments that should inspire investors to back its native asset, ETH. Chief among these is the move to proof-of-stake this fall.
Transitions are important for several reasons. First, this change significantly reduces the issuance of ETH. With each block being added to the blockchain, less ETH enters circulation and less selling pressure should lead to higher ETH prices. Combined with EIP-1559 in 2021 – which effectively burns ETH paid as transaction fees – the network burns more ETH than it creates, making it a deflationary asset.
The “merger,” as it’s known, the transition to proof-of-stake, is just one of several planned upgrades on ethereum’s recently reworked roadmap. The network’s co-founder, Vitalik Buterin, unveiled the multi-year plan in November 2022. The roadmap aims to address various network deficiencies such as scalability and censorship resistance.
ETH Price Prediction
Expert cryptocurrency price analysts are divided on whether ETH or SOL will outperform in the future. For example, Priceprediction.net estimates ETH maximum prices in 2023, 2024, and 2025 to be $2,196, $3,206, and $4,742, respectively. These figures represent gains of 95%, 185%, and 322% compared to today’s ETH price of $1,124.
Meanwhile, Gov.capital remains bullish on ETH, but not as much as SOL. Its price analysts estimate ETH will hit $3,630 next year — a 223% jump from today’s price. Five years from now, they estimate that the ETH price will reach $17,148. This represents a 1,426% increase in today’s price.
Should you do the swap?
Choosing when to swap between cryptoassets to take advantage of upside price action is tough, but can be hugely rewarding.For example, if you swapped BNB to MATIC Before Polygon makes a string of bullish announcements involving Meta, Reddit and other household names, you’ll be rewarded handsomely.
The price of SOL has fallen by more than 92% so far this year, and Ethereum’s switch to proof of stake in 2022 has made headlines. Since SOL may be oversold, switching from ETH to SOL today could be a good deal. If, in a future bull market, the network attracts the same enthusiasm as it did in 2021, investors should enjoy significant upside relative to the dominant smart contract network.