Macro expert and Real Vision CEO Raoul Pal said that Solana (SOL) will continue to gain ground in Ethereum this cycle. 
$3,042He stated that it could outperform (ETH). Additionally, another altcoin that is in the top 20 in terms of market capitalization and is a relatively new entry in the layer-1 sector is expected to combine both these and Bitcoin. 
$76,601He stated that it may have the potential to leave (BTC) behind.
Market Performances
Pal noted that Solana is trading at $205, an increase of 21% this week. Ethereum is trading at $2,949 with a 16% increase, while Bitcoin is trading at $76,304 with a 9% increase. SUI, on the other hand, reached $2.32 with an increase of 17%.
Ethereum’s Transition to Bitcoin
Pal noted that Ethereum outperforming Bitcoin throughout this cycle is partly due to the fact that the crypto cycle has moved into the risk-taking phase. He also said that the crypto industry is expected to benefit from a friendlier regulatory environment following the election of Donald Trump as US President.
Future Prospects
“The reason ETH is outperforming SOL is because regulations have improved significantly for crypto. “This makes it possible for tokens to emerge that provide utility in DeFi and traditional finance to use tested chains.”
Pal suggested that improved regulations would trigger two important developments. First, tokens that provide benefits in decentralized finance (DeFi) begin to provide returns, thereby increasing the network value. Secondly, traditional finance creates greater use cases on the most tested and adopted chains.
He stated that these elements could dramatically increase Ethereum’s market cap and outpace retail adoption on other chains, while ETH returns will attract more institutions. Pal stated that the returns will enable the creation of other financial products such as guarantee funds, and that these activities will boom as regulations improve.
Pal’s predictions reveal important dynamics in the crypto market that investors should pay attention to. Competition from Layer-1 chains and the impact of the regulatory environment on the adoption of cryptocurrencies may shape future market movements.
In this game of the crypto market, the environment of trust provided by the regulations will be an important factor when evaluating the sustainable growth potential of innovative projects.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
