Solana could reach 50% of Ethereum's market value, VanEck predicts

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Solana’s technological prowess could boost its market cap to half that of ethereum, according to a recent report. eth-vs-sol?utm_source=marketvector&utm_medium=email&utm_campaign=MVIS100&mkt_tok=NDY4LUJNSC04MzQAAAGVyD3r_UXQVdDf9IDf6rcexR4BgDMEeHM1TH7Wkh3WSXYrZSv72mwIQDCnJAe2vtz12nSAtRlIV2vddmimFqD-daU2AM1JsyfOV7e88w0″ target=”_blank” rel=”noopener nofollow noreferrer”>report According to VanEck Market Vector's report, Solana's price could rise to $330, which is more than 50% higher than its current level.

“According to third-party research, Solana has the potential to reach 50% of ethereum’s market cap, with predictions placing SOL at a price of $330,” the report wrote.

“These forecasts are derived from technical models available on platforms such as TradingView, suggesting a potential sea change in the cryptocurrency landscape if this market cap surge occurs,” he added.

As detailed, the Layer 1 (L1) blockchain outperforms ethereum in terms of key metrics such as transaction capacities, 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. For years, the blockchain has positioned itself as a strong competitor to ethereum thanks to its greater efficiency and scalability.

However, Solana's market cap is still only 22% of ethereum's, the report highlights. ethereum” target=”_blank” rel=”noopener nofollow noreferrer”>Data According to CoinGecko, ethereum has a market cap of over $313 billion, while Solana has a market cap of around $70.6 billion.

Some of the reasons behind this are slow institutional adoption and reluctance to rotate capital.

The report notes that when it comes to institutional adoption, Solana is lagging behind ethereum in institutional investment as ethereum’s head start has established it as a familiar choice for institutions.

Additionally, institutions may be hesitant to move large amounts of capital out of established assets like ethereum, even if Solana offers advantages.

The report suggests that investors should consider diversifying their investments across multiple L1 blockchains, including ethereum and Solana, to mitigate risk and capture upside.

In the long term, the growth of decentralized finance, stablecoins, and payments are key drivers for the adoption of both ethereum and Solana, according to the report. Recent advancements in decentralized exchanges and stablecoin transactions indicate the expansion of use cases for cryptoassets.