- 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.
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.
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.
The post Solana Expected to Reach Half of Ethereum’s Market Cap as It Outperforms in Transaction Speed and User Growth appeared first on Crypto News Land.
Earn more PRC tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://parrotcoin.net0
PRC Comment Policy
Your comments MUST BE constructive with vivid and clear suggestion relating to the post.
Your comments MUST NOT be less than 5 words.
Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.
Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.
Constructive REPLY to comments is allowed