I recently made a video wondering if SOL could follow the same path as ETH but 6 years later since ICO price was similar ($0.22 vs. $0.31) but 6 years later (2020 vs. 2014). You can click on the link below to learn more (it lasts less than 1 minute):

https://youtube.com/shorts/1o76Hc1cPkw?si=XB6Q31uFBGUfHe2l

However, after I made that video, I realized that in 2018, 4 years after its ICO, ETH price collapsed to $82 after having reached $1000+. And then, I started to have doubts about SOL's ability to maintain its momentum. Now, my prediction is looking scarily accurate...

The narratives surrounding SOL have been stretched to the limit. ETF hype, Trump's Bitcoin reserve, and other attention-grabbing stories have fueled its rise. But there's a palpable lack of real substance behind the hype. Now that the ETH spot ETF in the US is a reality, SOL's narrative seems to be losing steam.

So, what can you do to protect yourself if SOL takes a nosedive?

I've been hedging my SOL holdings by short selling on perpetual exchanges. For SOL, I use Drift, which is a dapp on Solana. This strategy allows you to profit from price declines without actually owning the asset.

How does it work?

1. Open a Short Position: On Drift, you can open a short position on SOL. This means you're essentially betting that the price will go down.
2. Set Your Leverage: You can choose how much leverage to use. Leverage amplifies your potential gains (and losses), so be careful.
3. Monitor the Price: Keep a close eye on SOL's price movements. If it goes down, your short position will profit.
4. Close Your Position: When you're ready, you can close your short position to lock in your profits.

Want to try it yourself?

Click here to start using Drift (referral link)

Warning: Short selling is risky, especially with leverage. Only use funds you can afford to lose.

Disclaimer: I'm not a financial advisor. This is not financial advice. Do your research and invest at your own risk.

Let me know in the comments what you think about SOL's future. Are you bullish, bearish, or somewhere in between?