Former Goldman Sachs head predicts a tenfold growth of altcoins amid the approval of ETH ETFs

The material is not an investment recommendation and is published for informational purposes only.

What’s new? Real Vision co-founder and CEO of Global Macro Investor and former head of Goldman Sachs investment bank Raoul Pal has said that the market is on the verge of entering the “banana zone,” where the value of altcoins can grow tenfold. The upcoming launch of Ethereum-based spot exchange-traded funds (ETFs) in the United States and the subsequent influx of new capital into the market is helping to bring this phase closer.

Raoul Pal’s YouTube channel

What else is known? The senior executive advised investors to take a disciplined approach, allocating the largest portion of the crypto portfolio to large cryptocurrencies such as Solana and a smaller portion to high-risk, high-reward projects.

He emphasized the importance of this period in the crypto market, seeing it as the beginning of a transformational phase that could lead to unprecedented wealth accumulation.

Pal also separately highlighted the resilience of the native token of the Solana (SOL) blockchain, which has persisted despite a period of significant volatility. He cited two main reasons that bolstered his confidence in the altcoin, with a $68 billion capitalization.

Pal named one of the key factors such as an innovation of Solana developers as the ability to compress non-fungible tokens (NFTs). The State Compression technology, introduced last April, made it possible to repeatedly reduce the cost of storing NFTs on the network by compressing them.

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Thus, it costs 50 SOL to produce and store 100 million compressed NFTs compared to 1,2 million SOL for classic NFTs. According to Pal, this opens up opportunities for scaling at low cost and creating new use cases for NFTs.

The senior executive also highlighted the Firedancer client-validator in development, which will increase the blockchain’s throughput to one million transactions per second (TPS). Solana currently holds the record for the fastest blockchain with 1054 TPS, according to analysts of the CoinGecko aggregator.

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Pal stated that he is convinced of SOL’s growth prospects. Moreover, he reported that his crypto portfolio consists of 90% of these tokens.

To support his prediction, he noted that a perfect, “textbook”-like technical analysis pattern called a wedge is forming on the SOL price chart, which historically indicates a strong potential for an upside breakout. Combined with low volatility, according to Pal, this suggests a significant price move is imminent.

The senior executive also drew a parallel with bitcoin, whose low volatility preceded a significant price rise. According to him, SOL is in a similar situation and is also ready for growth, the rates of which can outpace both BTC and ETH.