VanEck has projected that Solana may soar by over 100% from its current market capitalization to capture as much as 50% of Ethereum’s value
Investment asset management firm VanEck is bullish about Solana (SOL). The $100 billion asset manager says the Layer-1 network has the potential to reach 50% of Ethereum’s market cap.
Solana Trump’s Over Ethereum With Fast Speed
Ethereum’s market cap is currently $313.04 billion, making it the second-largest cryptocurrency by this metric. On the other hand, Solana’s market cap is $71.05 billion, ranking it as the fifth-largest crypto. Therefore, to reach half of ETH’s current market cap, Solana must register as much as a 120% increase.
For the longest time, the crypto community has placed high hopes on Solana, which has earned it the title “Ethereum Killer.”
There is speculation that the coin could eventually target a $330 price, which could help it close in on Ethereum’s price. Solana’s fast transaction speed and low costs are some of the factors that give the network an edge over its counterparts, including Ethereum.
When comparing SOL to ETH, the VanEck Research arm said that “data is striking.” Furthermore, it opted that “Solana processes 3,000% more transactions than Ethereum, has 1,300$ more daily active users, and its transaction fees are nearly 5 million percent cheaper.”
These discrepancies may trigger the shift that Solana needs.
Spot Solana ETF as Catalyst For SOL ATH
To a large extent, the coin has yet to have a breakthrough that puts it on the same playing field as Ethereum. However, VanEck strongly believes that this is about to change.
This year, the United States Securities and Exchange Commission (SEC) showed more leniency towards the crypto industry by approving Bitcoin and Ethereum spot ETFs.
The offerings brought a major exposure to the underlying cryptocurrencies. Bitcoin saw its price jump to over $73,750, its current All-Time High (ATH). Ethereum also recorded some surge in its market value, even though this uptick did not last for long.
The ecosystem is expecting a Solana ETF next. Talks about a potential spot in Solana ETF have sparked investors’ interest. If actualized, the SOL price may be on its way to hitting the projected $330 in the long term.
Disclaimer: The information provided in this article is for informational purposes only. It does not constitute investment, financial, trading, or any other sort of advice. You should not treat any of BGECrypto’s content as such. BGEcrypto does not recommend that any cryptocurrency should be bought, sold, or held by you. Do your due diligence and consult your financial advisor before making decision.
