Solv Protocol (SOLV) Price Prediction Upon Listing

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Solv Protocol (SOLV) will be officially listed on exchanges on January 17. SOLV is being listed in the context of the Bitcoin staking topic being overshadowed by other stories that are more attractive to investors, such as AI Agent or DeFAI. What will the price of SOLV be?

Here are summaries of opinions from the community and industry experts on the valuation of Solv Protocol and the upcoming price movements of SOLV.

Also Read: FUD for Solv Protocol: Distorting Bitcoin Staking Data

Assessing the Selling Pressure at Solv Protocol's (SOLV) TGE

Recently, the project has announced important information about the SOLV token airdrop for users. This information can help investors assess the initial selling pressure and provide a basis for predicting the SOLV price upon listing.

Distribution of SOLV tokens at launch. Source: Solv Protocol.Distribution of SOLV tokens at launch. Source: Solv Protocol.
  • The maximum total supply of SOLV is 9.66 billion tokens, and the total supply at TGE is 8.44 billion. Of this, 7% of the initial genesis supply will be distributed through the Binance Megadrop. This is the only distribution pool that will be 100% unlocked immediately after the TGE, which could create a certain selling pressure from those who receive these tokens if they decide to sell immediately to take profits.
  • Additionally, 8.5% of the initial genesis supply will be allocated to the community airdrop, but only half (4.25%) will be unlocked immediately at the TGE. The remaining portion will be unlocked gradually over the next three months, reducing the immediate selling pressure.

Although a large number of tokens will be unlocked immediately, a significant portion of users participating in the Solv ecosystem may not sell immediately as they have already invested in the system and may want to hold onto the tokens to take advantage of future opportunities.

Additionally, the community's participation in staking and farming activities also creates a potential source of demand, with users who have not yet participated potentially buying in, reducing the selling pressure. Investor Stacy Muur believes that SOLV's inflation in the first year is expected to be around 40%, lower than many other high FDV protocols in Web3.

"The Total Value Locked (TVL) of SOLV will be less affected after the TGE, as many users will be willing to increase their exposure to SOLV by buying tokens from those who want to exit." - Investor Stacy Muur predicts.

How is the Market Valuing Solv Protocol (SOLV)?

At the time of writing, SOLV on the pre-market is priced around $0.2 - $0.29, which means the market is valuing the project's fully diluted valuation (FDV) at $2 billion - $2.8 billion, and the market capitalization at around $1.5 billion - $2.5 billion.

The largest project in the Bitcoin ecosystem currently, Stacks (STX), only has a market capitalization of around $2.3 billion. Therefore, investors need to moderate their expectations at this level before the market provides more additional information to re-evaluate.

An objective factor that investors also need to consider is the market context. The sentiment of investors towards the Bitcoin ecosystem is no longer as strong as the BRC-20, Rune, Ordinal, Inscription explosion period.

Summarizing the above analyses, the SOLV price upon listing can be predicted to be around $0.2. The initial selling pressure will likely push the price below $0.2, creating a potential buying opportunity. Investor Jiraiya - Founder of TailoredWeb3 - believes that a $5 billion valuation would be a potential selling opportunity.

"Personally, I will buy if it launches below $750 million, for sure. At the $1.5 billion level, I might just hold onto my airdrop (I think it still has a lot of potential to grow). At the $5 billion level, I might short sell to hedge my risk because the "airdrop farmers" will likely take profits." - Jiraiya opines.

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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