Ethereum and Solana are two of the most established smart contract blockchains today. Both networks’ native assets have performed amazingly since their respective launches. As the ongoing crypto bear market continues, however, investors might consider converting SOL to ETH or vice versa. But is it a good trade? This article will assess recent developments for both crypto assets, asking if now is the time to make the swap.
Although most crypto assets are struggling this year, SOL has had a particularly rough 2022. Having started at around $170 on Jan. 1, 2022, Solana’s native asset now trades just below $12.
Yet, bullish developments continue with Aleph.im recently launching a decentralized, open-source transaction indexing solution for the network. The protocol enables individual projects to query the blockchain’s transaction history without requiring 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 sector is already among the crypto industry’s most vibrant, and the upgrade should make the network an even more attractive hub for tokenizing artwork, in-game items, and other media forms.
SOL Price Prediction
Solana’s bullish developments have expert price analysts optimistic about SOL’s future price. Priceprediction.net estimates the crypto asset to hit the maximums of $23.09, $34.49, and $51.34 during 2023, 2024, and 2025, respectively. From today’s price, that would represent gains of 92%, 187%, and 328%.
Even more bullish on SOL price is Gov.capital. The resource’s price analysts estimate the crypto asset to rise to $218 over the next year and a massive $1,332 by 2027. If such prices materialize, SOL would have gained 1,717% and 11,000%, respectively, versus today’s price.
The dominant smart contract network Ethereum has also had several recent bullish developments that should inspire investors to back its native asset ETH. Chief among them is its shift to proof-of-stake this fall.
The transition is important for several reasons. First, the change reduces ETH issuance significantly. With less ETH entering circulation with every block added to the blockchain, there will be less selling pressure, which should result in a higher ETH price. Combined with 2021’s EIP-1559 — which actually burns ETH paid as transaction fees — the network has destroyed more ETH than it has created, making it a deflationary asset.
“The merge,” as the transition to proof-of-stake is known, is just one of several planned upgrades on Ethereum’s recently reworked roadmap. Vitalik Buterin, the network’s co-founder, revealed the multiyear plan in November 2022. The roadmap looks to address various network shortcomings, such as scalability and censorship resistance.
ETH Price Prediction
Expert crypto price analysts are somewhat divided on whether ETH or SOL will outperform going forward. For example, Priceprediction.net estimates a maximum ETH price of $2,196, $3,206, and $4,742 in 2023, 2024, and 2025, respectively. Versus today’s ETH price of $1,124, those figures represent a 95%, 185%, and 322% gain.
Meanwhile, Gov.capital is still bullish on ETH but less so than it is on SOL. Its price analysts estimate ETH to hit $3,630 over the next year — a 223% gain on today’s price. Over five years, they estimate the ETH price to reach $17,148. That would represent a 1,426% growth on today’s price.
Should You Make the Swap?
Choosing when to swap between crypto assets to take advantage of upside price moves is tough but can be hugely rewarding. For example, if you’d have swapped BNB to MATIC ahead of Polygon’s string of bullish announcements involving the likes of Meta, Reddit, and other household names, you’d have been handsomely rewarded.
Down more than 92% already this year, SOL price has been pummeled in 2022 while Ethereum’s switch to proof-of-stake has dominated headlines. With SOL potentially oversold already, swapping from ETH to SOL today might be a good trade. If, during a future bull run, the network attracts the same enthusiasm it did in 2021, investors should enjoy a lot of upside relative to the dominant smart contract network.