Rangers beat Celtic in the Scottish Cup semi final last month.
The Gers knocked their fierce rivals out of the Scottish Cup in a scintillating Old Firm derby clash.
Mark Warburton’s side were highly impressive in the game as they twice took the lead and dominated for large parts against the Hoops.
They eventually required penalties to progress and move into the final, but received widespread praise for their performance nonetheless.
Many are hoping they can challenge for the Scottish Premiership title after they secured their top-flight return, and Wallace insists the win was just a small taste of their potential.
“We are sitting on a great season, not just winning the league and the Petrofac Cup, but also in the way we have done it,” he told the Daily Record.
“In the Celtic game, we showed a lot of people what we can do when we hit our level.But that was just a small taste of what we can be. Next season we will continue to aspire to be better.”
What the win did demonstrate is that Rangers may not be as far away from their rivals as many would have anticipated.
However, they cannot afford to rest on their laurels this summer and must look to improve the squad for the top flight, which Mark Warburton seems keen to do.
With a new manager arriving next season, Celtic are sure to strengthen too, further heightening Rangers need to build on an impressive campaign.