VanEck with massive forecast but there is a problem

TL;DR

• Price forecast: Analysts predict a price range of $9.81 (bearish) to $3,211.28 (bullish) for Solana by 2030.
• Strengths: Solana boasts unmatched data performance and is significantly more affordable than the competition for tasks like nft minting.
• Growth indicators: October saw a notable 74% increase in assets under management (AUM) for Solana DeFi applications.

VanEck, the global asset manager and an early adopter of ETFs and foreign equity investments, predicted a 10,000% increase in the price of Solana in its most bullish scenario for 2030.

The year 2030 is not far away for a 10,000% return on any asset. But to be fair to those with short-term open interest in Solana, VanEck analysts’ worst-case scenario puts SOL at $9.81 in 2030.

Solana Price Prediction 2030: $3,211

This is what VanEck analysts said:

“For 2030, our Solana valuation scenarios project a SOL price ranging between a bearish $9.81 and a bullish $3,211.28, supported by various market share and revenue estimates across key sectors.”

The authors of the note project that Solana will host the first DeFi application with 100 million users. Meanwhile, they assume that SOL monetizes at 20% of the ethereum acquisition rate. Furthermore, they conservatively estimate that SOL will be less than half of eth‘s market share in 2030.

“In this note, we model a scenario where Solana is the first blockchain to host an application incorporating over 100 million users.”

This is how they envision Solana achieving that killer app: usability. VanEck analysts write:

“As it stands, Solana’s data throughput exceeds that of any other blockchain in existence. In fact, Solana’s data capacity exceeds that of most planned blockchains.”

In addition to usability, or because of it, as VanEck’s authors define it in their note, there is Solana’s affordability.

Solana’s affordable DeFi could scale quickly

A Nansen analyst recently compared Solana to ethereum and Polygon for minting one million NFTs. ethereum‘s costs were $33.6 million and Polygon’s were $32,800. In Solana, it would cost $113.

Due to its speed and costs, the fundamentals of its business model are promising, with massive inflows from institutional investors as well as die-hard cryptocurrency developers and users.

As the price of Solana rose in October, the total number of assets under management (AUM) of Solana DeFi applications increased by 74%.

VanEck, no stranger to innovation, has long been bullish on cryptocurrencies. In February, the crypto-friendly global fund noted in a report that a 3% bitcoin allocation substantially improves portfolio diversification and performance.

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