Prominent angel investor and internet entrepreneur Jason Calacanis has aroused discussion in the cryptoverse with his unfavorable take on Solana’s (SOL) sky-high valuation.

Calacanis told his 779.8k followers on X that Solana, which recently surpassed the $100 milestone and reached a $46 billion valuation, is overvalued.

Examining Solana’s Valuation

Jason Calacanis is throwing shots at Solana.

In a Dec.28 post on X (formerly Twitter), the angel investor behind ridesharing app Uber and popular U.S.-based brokerage platform Robinhood suggested that no tangible business or consumer apps can justify Solana boasting a market valuation of around $46 billion.

Although Solana has emerged as a serious Ethereum (ETH) rival as it is a cheaper and faster place to handle transactions, Calacanis is asking tough questions about the network’s earnings and revenue — key aspects commonly used in valuing traditional businesses.

Calacanis then compared Solana’s market capitalization to well-established companies such as DoorDash, Palantir, and Spotify, indicating that the crypto is “completely disconnected from reality.”

Solana’s December Rally Wobbles In Sudden 9% Drop

Solana’s recent performance has been particularly noteworthy, considering its close association with the collapsed digital asset exchange FTX and the now-convicted crypto magnate Sam Bankman-Fried. Despite the madness surrounding FTX’s bankruptcy in November 2022, SOL has made quite an impressive recovery, with an 850% increase year-to-date. SOL is currently trading for $102 for the first time since April 2022, and it’s the fifth-biggest crypto after flipping Ripple’s XRP.

This startling upsurge was further highlighted by a substantial increase in network activities and a rise in new wallet addresses on the Solana network. Recently, the weekly transaction volume for decentralized exchanges (DEXs) on the Solana blockchain usurped that of exchanges on competitor Ethereum for the first time, driven primarily by a rise in dog-themed meme coins like BONK and Dogwifhat (WIF) on Solana.

Meanwhile, the price of SOL seems to have cooled off after the meme coin frenzy, indicating profit-taking from early investors. Data from Coingecko shows SOL fell 9.1% in the past 24 hours.