Solana’s Price Will Explode, Challenging Ethereum’s Market Dominance – VanEck

A recent report from VanEck suggests that Solana could reach a price of $330, potentially achieving half of Ethereum’s current market value.

The prediction is largely based on Solana’s impressive transaction speed and processing capabilities.

The report highlights Solana’s ability to handle thousands of transactions per second (TPS), which is over 3,000% faster than Ethereum. Additionally, Solana’s active user count is 1,300% higher, and its transaction fees are significantly lower – almost 5 million percent cheaper than Ethereum’s.

These advantages, particularly in speed and cost, position Solana as a strong competitor to Ethereum, especially for payments and remittances. Stablecoins, crucial to decentralized finance, could benefit from Solana’s superior performance, offering cost savings to users.

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According to the report, retail investors are slowly realizing Solana’s potential as a smart contract platform that could rival Ethereum. However, institutional investors have been more hesitant to shift from established assets like ETH to the newer Solana, possibly due to a reluctance to leave behind the familiar.

Earlier in September, VanEck also analyzed Ethereum’s poor price performance, attributing it mainly to value extraction by Ethereum layer-2 solutions after the Dencun upgrade in March 2024, which drastically cut transaction fees for layer-2 networks. This, combined with a growing preference for faster layer-1 networks like Solana and Sui, has contributed to Ethereum’s declining revenues, despite its first-mover advantage.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.