Solana could hit 50% of Ethereum’s market cap, VanEck predicts
Key receivers
Solana's transaction efficiency surpasses Ethereum with 3000% processing speed and very low fees. VanEck's analysis suggests a significant market cap increase for Solana, which could reach 50% of Ethereum's price.
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Solana's technological prowess could nearly halve Ethereum's market value, according to a recent VanCake Market Vector report. The report also indicated that Solana's price could rise to $330, which would mean an increase of more than 50 percent from its current level.
“Based on third-party research, Solana has the potential to reach 50% of Ethereum's market cap, with predictions that SOL will hit $330,” the report wrote.
“These forecasts are derived from technical models available on platforms such as TradingView, which indicate a possible seismic shift in the cryptocurrency landscape if this market spike occurs,” he added.
As detailed, the Layer 1 (L1) blockchain outperforms Ethereum in terms of key metrics such as transaction capacity, user base, and transaction fees.
Solana processes 3,000% more transactions than Ethereum, has 1,300% more daily active users and offers nearly 5 million percent cheaper transaction fees, according to the report. Over the years, blockchain has positioned itself as a strong competitor thanks to its improved efficiency and effectiveness.
However, the report highlights that Solana's market cap is only 22% of Ethereum's. According to data from CoinGecko, Ethereum's market cap is over $313 billion, while Solana's is around $70.6 billion.
Some of the reasons behind it are slow institutional adoption and reluctance to invest capital.
According to the report, when it comes to institutional adoption, Solana lags behind Ethereum in institutional investment after establishing Ethereum's main startup as a common choice for institutions.
Moreover, even though Solana offers benefits, institutions may be reluctant to divert large amounts of capital away from established assets such as Ethereum.
According to the report, investors are investing in several L1 blockchains, including Ethereum and Solana, to reduce risk and hold upside.
In the long term, the development of decentralized finance, stable coins and payments are key drivers for both Ethereum and Solana adoption, according to the report. Recent developments in decentralized exchanges and stablecoin transactions indicate a boom for crypto assets.
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