Solana Has Led The Crypto Bull Run With Relative Strength
Since bitcoin bottomed on November 21st of 2022, Solana has shown relative strength compared to other “blue chip” crypto assets. Per this chart, if you’d invested $100 in Solana (SOL) back then, it would be worth around $860 today. It’s beaten the rest of the pack by miles. As for what this might mean for your crypto portfolio, here are three (long-term) strategies to consider.
Strategy 1: Invest more in Solana because it shows relative strength compared to the rest of the market.
Momentum investors will be betting that the stronger Solana gets, the stronger it will get. So instead of buying low and selling high, they’ll look to buy high and sell higher. They’ll see Solana as crypto’s version of Amazon, Google, or Microsoft. And this might be true given Solana’s fundamentals (check out our Solana guide here).
Strategy 2: Invest more in the laggards and less in Solana.
Some investors might say that Solana is getting a bit expensive at these prices, and would rather buy Avalanche or Ethereum (for example). These also have great fundamentals, but haven’t run as much as Solana over the past year.
Strategy 3: Invest the same amount in Solana as the rest.
The crypto market moves fast and can change at any time. So in the long run, it’s usually best to prepare for different scenarios by spreading your bets. After all, if we run the same comparison between the peak of bitcoin’s last bull run in November 2021 until its bear market low in November 2022, the results look very different…
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