A recent report from VanEck’s Market Vector highlighted the impressive potential of Solarium (CRYPTO:SOL) and suggested that its market capitalization could reach half that of Ethereum (CRYPTO:ETH).
What happened
According to BitFinanzas, the price of Solana could increase to $330, which would represent an increase of more than 50% compared to its current level.
The report cited third-party research that predicted Solana could reach 50% of Ethereum’s market capitalization. These forecasts were based on technical models available on platforms such as TradingViewwhich suggested a potential major shift in the Cryptocurrency landscape if this increase in market cap were to come to fruition.
From a technical point of view, the report highlighted that Solana outperforms Ethereum in key metrics such as transaction processing capacity, user base, and transaction fees. Specifically, Solana processes 3,000% more transactions than Ethereum, has 1,300% more daily active users, and offers transaction fees that are almost 5 million percent cheaper.
Over the years, Solana has positioned itself as a strong competitor to Ethereum thanks to its superior efficiency and scalability. However, its market capitalization represents only 22% of that of Ethereum.
According to data from CoinGeckoEthereum’s market capitalization exceeds $313 billion, while Solana’s is around $70.6 billion.
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Why is it important
The report cited slow institutional adoption and investor reluctance to rotate capital into Solana as key factors limiting its growth compared to Ethereum. Despite its technological advantages, Solana lags behind in terms of institutional investment, as Ethereum has a considerable lead and is a more well-known and stable option for financial institutions.
Additionally, the report highlighted that many institutions prefer not to move large amounts of capital from established assets like Ethereum, despite the advantages Solana offers in terms of efficiency. To counter this risk, the report recommended investors diversify their portfolios by investing in multiple layer 1 (L1) blockchains, including both Ethereum and Solana, in order to mitigate risk and capture growth potential in both ecosystems.
The relevance of this report is underlined by recent developments in the Solana ecosystem. On September 26, Google Cloud and Solana launched GameShifta development tool that allows developers to integrate Web3 functionality into existing Web2 games. This move could increase the adoption of Solana in the video game sector.
Besides, Solana Mobile He presented his new phone last week Seekerwhich promises better integration with Web3 and new features. With over 140,000 pre-orders in 57 countries, this launch could further drive Solana adoption.
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