Currently, Solana (SOL) is the fifth-largest cryptocurrency, with a market capitalization of approximately $71 billion. Following the recent decision by the US Federal Reserve to cut interest rates by 0.50% on September 18, the cryptocurrency market has seen a resurgence in investor confidence, leading to notable price increases for SOL.
In light of these developments, asset management firm VanEck, through its research arm MarketVector, has released compelling predictions regarding Solana’s future. The report highlights Solana’s technological advancements and raises questions about its current market positioning compared to Ethereum (ETH).
Solana Market Cap Could Hit $157 Billion
VanEck’s analysis reveals significant differences between Solana and Ethereum, particularly in performance metrics. Solana processes 3,000% more transactions than Ethereum, has 1,300% more daily active users, and offers transaction fees that are nearly 5 million percent lower.
However, despite Solana’s superior performance, its market capitalization is only 22% of Ethereum’s, which currently stands at $314 billion. This disparity is even more pronounced when considering the combined activity of Ethereum and its Layer 2 (L2) solutions, which often enhance transactional capabilities.
Related Reading
Based on the report, there is growing optimism that Solana could reach 50% of Ethereum’s market cap, which would mean a jump from the current market cap of $71 billion to $157 billion for the fifth-largest cryptocurrency.
In addition, the research notes that the SOL price could reach a mark of $330, representing a rise of nearly 120% for the cryptocurrency. This could represent a potential top for this market cycle and a new all-time high for the token, a far cry from the current record high of $259 in the 2021 bull run.
VanEck Warns Of Missing Out On SOL Opportunities
The report also notes that the roles of decentralized finance (DeFi), stablecoins, and payments are critical drivers of adoption for both Ethereum and Solana. Lending and borrowing in the DeFi space are projected to grow rapidly. At the same time, Solana’s cheaper fees and faster transaction times present a strong case for its adoption in payments and remittances.
The asset manager believes that if institutions and everyday users can benefit from low-cost transactions, Solana’s user base could grow…
Click Here to Read the Full Original Article at NewsBTC…
