Can Solana Catch Up to Ethereum? Analysts See Potential for Major Gains
VanEck's MarketVector has identified a significant valuation gap between Solana (SOL) and Ethereum (ETH), suggesting SOL could potentially reach half of ETH's market cap, with projections placing its price around $330.
Martin Leinweber, director of digital assets research, highlights Solana’s superior performance metrics, including 3,000% more transactions and 1,300% more daily active users than Ethereum, alongside transaction fees that are nearly 5 million percent lower.
Despite these advantages, Solana’s market cap stands at just 22% of Ethereum’s, which currently sits at $314 billion compared to Solana’s $70 billion. To capture half of Ethereum’s share, Solana would need to exceed $150 billion in market cap.
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The bullish sentiment is also reflected in the rising SOL/ETH ratio, which has increased from 0.01 to nearly 0.05 this year, indicating potential price discovery for SOL.
However, Leinweber notes that attracting institutional investors is crucial for driving SOL’s value higher. If the U.S. approves ETF offerings for Solana, GSR forecasts potential gains of 3.4x to 8.9x in different scenarios. As it stands, SOL is trading around $150, having gained nearly 15% from its support level of $128, with a critical resistance at $160 to clear for further gains.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
