Ethereum At $9,200, XRP At $5,800, And Solana At $3,400? Analyst Says This Is Not Possible

Source Newsbtc

Cryptocurrency prices are starting to grind through a period of slow but steady gains in the past 48 hours, with Bitcoin again leading the charge and most altcoins lagging in recovery. In a recent post on the X platform, popular Bitcoin maximalist and CEO of JAN3,  Samson Mow, described the misleading nature of unit bias among altcoins.

According to Mow, Ethereum at $9,200, XRP at $5,800, and Solana at $3,400 is virtually impossible, given the current supply of these tokens.

Unit Bias And Market Cap: The Numbers Don’t Lie

Mow’s post on X challenges how investors perceive the value of altcoins like Ethereum, XRP, and Solana. He proposed a reframing of altcoin valuations by applying Bitcoin’s supply model to them. Bitcoin was created with a total possible circulating supply of 21 million units, with 19.85 million of those currently in circulation.

At the time of writing, one unit of 21 million Bitcoins is trading around $88,000. This price might be too much for retail traders. As such, the idea of owning a whole unit of XRP or Solana feels more accessible to newcomers and retail traders compared to buying a fraction of Bitcoin with the same capital. 

To expose how misleading this mindset can be, Mow reimagines altcoin valuations by dividing their total market capitalizations by Bitcoin’s 21 million supply cap. This is essentially asking what one unit of these assets would cost if they had the same scarcity of supply as Bitcoin. Based on current market caps, Ethereum would be valued at approximately $9,200, XRP at $5,800, and Solana at $3,400. 

Given the current price of Ethereum, Solana, and XRP, these figures are unrealistic and reveal how much of the altcoin appeal is driven by unit bias rather than actual value. Furthermore, it shows that Bitcoin has better fundamentals and scarcity in its supply dynamics.

Narrative Of Bitcoin Dominance Getting Stronger

For Mow and other Bitcoin maximalists, the disparity in Bitcoin supply and that of popular altcoins is yet another reason why Bitcoin dominance is likely to grow stronger in the long run. Notably, the inflows into spot Bitcoin ETFs and increasing recognition among traditional finance investors are strengthening the case for Bitcoin’s dominance going forward.

Notably, Mow’s perspective stands in opposition to the outlook held by some analysts who still anticipate an incoming altcoin season. These analysts believe that Bitcoin dominance, despite currently sitting at a yearly high of 63.5%, could be on the verge of a reversal. One notable technical analysis even projected a sharp crash in dominance toward the 40% mark in the coming months.

At the time of writing, Bitcoin is trading at $88,530, up by 1.3% in the past 24 hours. Ethereum is trading at $1,620, representing a 1.5% decline over the same period. Solana is down 0.5% at $140, and XRP is trading at $2.09 after a 1.63% decline in the past day.

Ethereum
Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Gold Price Forecast: XAU/USD climbs above $4,250 as Fed rate cut weakens US DollarGold price (XAU/USD) rises to seven-week highs near $4,275 during the early Asian session on Friday. The precious metal extends its upside as the US Federal Reserve’s (Fed) quarter-point rate cut drags the US Dollar (USD) lower. 
Author  FXStreet
Dec 12, Fri
Gold price (XAU/USD) rises to seven-week highs near $4,275 during the early Asian session on Friday. The precious metal extends its upside as the US Federal Reserve’s (Fed) quarter-point rate cut drags the US Dollar (USD) lower. 
placeholder
Macro Analysts: Hawkish Japan Could Push Bitcoin Below $70KAnalysts predict Bitcoin may face further declines towards the $70,000 mark if the Bank of Japan raises interest rates as expected.
Author  Mitrade
Dec 15, Mon
Analysts predict Bitcoin may face further declines towards the $70,000 mark if the Bank of Japan raises interest rates as expected.
placeholder
Gold declines on profit-taking, USD strength ahead of US CPI releaseGold price (XAU/USD) edges lower below $4,350 during the Asian trading hours on Thursday. The precious metal retreats from seven-week highs amid some profit-taking and a rebound in the US Dollar (USD).
Author  FXStreet
Yesterday 07: 47
Gold price (XAU/USD) edges lower below $4,350 during the Asian trading hours on Thursday. The precious metal retreats from seven-week highs amid some profit-taking and a rebound in the US Dollar (USD).
placeholder
Bitcoin Hits $90K as Crypto Market Surge Wipes Out $120M in Short PositionsBitcoin ascended to $90,000 before a swift correction, impacting both long and short positions.Liquidity maneuvers continue to dominate BTC's short-term price dynamics, with recent sessions squeezing short sellers.
Author  Mitrade
23 hours ago
Bitcoin ascended to $90,000 before a swift correction, impacting both long and short positions.Liquidity maneuvers continue to dominate BTC's short-term price dynamics, with recent sessions squeezing short sellers.
placeholder
When is the BoJ rate decision and how could it affect USD/JPY?The Bank of Japan (BoJ) will announce its interest rate decision between 03.30 and 05.00 GMT, followed by Governor Kazuo Ueda's press conference at 06.30 GMT.
Author  FXStreet
6 hours ago
The Bank of Japan (BoJ) will announce its interest rate decision between 03.30 and 05.00 GMT, followed by Governor Kazuo Ueda's press conference at 06.30 GMT.
goTop
quote