• Solana processes 3,000% more transactions than Ethereum and has 1,300% more daily active users.
  • Solana’s transaction fees are nearly 5 million percent lower than Ethereum’s.
  • Solana’s market cap is 22% of Ethereum’s, but could grow to 50% with increased institutional adoption.

Solana could grow to be worth half as much as Ethereum, according to a new report from VanEck’s Market Vector. The study highlights that Solana outperforms in important areas like transaction speed, user experience, and low fees. 

JUST IN: $100 billion asset manager VanEck says Solana has the potential to reach 50% of Ethereum's market cap.

— Watcher.Guru (@WatcherGuru) September 25, 2024

These strengths could push SOL’s price to $330, which would be more than a 50% increase from its current market level.

Solana Outpaces Ethereum in Key Metrics

The report shows that Solana handles 3,000% higher transaction volume compared to Ethereum. Moreover, it features a 1,300% increase in daily active users . These figures indicate that its’s technology is better in terms of efficiency and scalability. 

Furthermore, its fees for transactions are much more affordable, almost 5 million percent less than the fees charged by Ethereum.

However, SOL’s market value remains at only 22% of Ethereum’s. According to CoinGecko data , Ethereum’s market value is greater than $313 billion, whereas Solana’s is over $70.6 billion.

Slow Institutional Adoption 

SOL’s decreased market cap is primarily due to the sluggish pace of institutional adoption. Many institutions view Ethereum as a safer option due to its longer track record. The report mentions that major investors are hesitant to shift funds from traditional assets such as ETH to SOL, despite Solana’s clear benefits.

Read CRYPTONEWSLAND on google news

Moreover, Solana lacks equivalent institutional support. For example, the SEC approved nine Ethereum exchange-traded funds. On the contrary, the likelihood of a Solana ETF in the United States in the near future is low.

Future Outlook for ETH and SOL

The report suggests that investors should diversify their portfolios by using Layer-1 blockchains like Ethereum and Solana. Decentralized finance, stablecoins, and digital payments are expected to fuel blockchain growth in the future. As SOL and ETH acquire popularity in these areas, their rivalry is projected to grow.

SOL’s exceptional results in transactions, user involvement, and fees establish it as a strong competitor against Ethereum . Nevertheless, its market capitalization continues to be lower because institutional adoption is proceeding at a slower pace. 

VanEck’s analysis indicates that Solana’s market value may reach half of Ethereum’s as it excels in important measures, making it a promising asset to monitor.

disclaimer read more

Crypto News Land, also abbreviated as "CNL", is an independent media entity - we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.