Prominent crypto analyst Alex Krüger has shared his strategic shift ahead of the 2024 U.S. Presidential Election, opting to focus on Solana (SOL) rather than Ethereum (ETH). Initially planning to take leveraged positions on both ETH and SOL if it looked like former President Donald Trump might secure a win, Krüger recently revealed on X (formerly Twitter) that he has decided to pivot exclusively to SOL.
Election Night Play on Solana
If Trump shows signs of leading, Krüger plans to leverage his position on SOL/USD, especially on election night. The strategy likely involves perpetual futures contracts, which allow for leveraged trading while hedging against potential volatility. He noted his aim to secure an entry point with at least a 10% buffer from the baseline price, and he also plans to go long on SOL in the spot market as part of a more committed hold-through strategy.
Why the Pivot from Ethereum?
Krüger’s pivot is not due to a bearish view on ETH but rather a response to several structural trends. First, the ETH/BTC pair has been in a prolonged downtrend, without any significant capitulation event signaling a shift. Ethereum’s on-chain activity has also declined as users increasingly migrate to platforms with specialized functions, like Solana for DeFi and NFT trading.
Layer 2 solutions, while common in the Ethereum ecosystem, haven’t generated enough direct value to boost ETH’s core appeal. In contrast, Krüger believes Solana has reached “escape velocity,” expanding its dominance in speculative, fast-moving markets and securing a robust user base, especially in high-volume asset trading or “degen wars.”
Regulatory Shifts and Market Impact
Krüger also touched on the SEC’s regulatory stance, hinting that SEC Chair Gary Gensler’s potential departure could open doors for Ethereum and Solana. If regulators relax certain stances, Ethereum-based ETFs may gain the ability to stake their holdings, making them more attractive to investors. However, Krüger argues this benefit would also extend to Solana, making it a compelling choice without providing ETH a unique advantage.
In conclusion, Krüger’s election night strategy highlights Solana’s strong performance metrics and resilient community, suggesting SOL could outperform ETH in the short term if a Trump victory bolsters speculative momentum in the crypto market.
