- Solana could soon rival Ethereum, capturing up to 50% of its market value, according to a report by VanEck’s Market Vector.
- Despite lower institutional interest, Solana has higher transaction volumes, more daily users, and significantly cheaper fees.
- Predictions suggest Solana could soar to a value of AUD 482, potentially positioning it as a leader in the DeFi sector.
- Ethereum still leads in developer engagement and ecosystem depth, but Solana’s rapid growth is noteworthy.
According to a recent report by VanEck’s Market Vector, Solana could soon reach as much as 50% of the market value of Ethereum.
Solana, touted the Ethereum-killer, is already the fifth largest crypto by market cap, currently trading for US$147.88 (AU$216.42) compared to ETH’s US$2,575 (AU$3,768), according to data from CoinMarketCap.
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Solana’s Technological Capacity to Push It Higher
The report suggests that despite institutions not showing much interest in Solana, it has the potential to outshine Ethereum. They cite Solana’s higher volume of transactions, cheaper fees and more daily users for their bullish stance on the blockchain:
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.
VanEck’s Market Vector Data reported by Crypto Rand supports that thesis. It shows that Solana’s volume on decentralised exchanges (DEX) surpassed that of Ethereum, while it also has ten times more daily active addresses.
SOL Could Reach AUD 482, Position Itself as DeFi Leader
Despite these key metrics speaking for Solana, the report points out that Solana’s market cap is still only 22% of Ethereum’s, with the gap widening when including Ethereum’s extensive array of layer-2 solutions.
But this could soon change, based on forecasts, the report estimates SOL could reach half of Ether’s market cap and a whopping AUD 482:
Based on third party research, Solana has the potential to reach 50% of Ethereum’s market cap, with predictions placing SOL at a price of USD 330 […] suggesting a possible seismic shift in the cryptocurrency landscape if this market cap increase occurs.
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However, there is a metric where Ethereum takes the cake, and that is developer activity. As data from Artemis shows, Ethereum has by far the most developers, sub-ecosystem and weekly commits. While Solana has 710 weekly devs and 322 sub-systems, Ethereum shines with 2,944 and 1,540 respectively.
But then again, Ethereum has of course had a lot more time to attract that sort of engagement and has arguably a first-mover advantage. The report believes that while retail is slowly warming up to Solana, institutions are still largely sitting on the fence.
Source:
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