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Solana “Richly Valued” Against Ethereum, But Could Outshine if Trump Wins: Standard Chartered
The post Solana “Richly Valued” Against Ethereum, But Could Outshine if Trump Wins: Standard Chartered appeared on BitcoinEthereumNews.com. A report from Standard Chartered suggests that Solana is overvalued compared to Ethereum based on key metrics. The U.S. election could influence the performance of Solana, Ethereum, and Bitcoin. Solana (SOL) is projected to lead the cryptocurrency market in growth by 2025, outpacing both Ethereum (ETH) and Bitcoin (BTC), according to a recent report by Standard Chartered. The British multinational bank predicts that Solana could rise five-fold in value especially if Donald Trump wins the forthcoming US presidential election. Geoffrey Kendrick, Global Head of Digital Assets Research at Standard Chartered, presented new valuation metrics for layer-1 blockchains with a focus on Solana and Ethereum. He compared Solana’s current market capitalization to Ethereum when it comes to several historical indicators. Solana’s market cap to fees ratio is 250x compared to Ethereum which is at 121x. This high valuation is based on the market expectations of Solana’s future growth potential, which Kendrick expects to be between 100 to 400 times the current throughput of Solana in the coming years. This growth potential, he believes, is easier to achieve under a Trump administration given the president’s friendly disposition towards digital assets. Report Contrasts Token Supply and Staking Yields While Ethereum has been the leading layer-1 blockchain network for quite some time now, the increased activity and the growth of Solana’s token price have raised the question of whether the network might soon dethrone Ethereum. However, according to Standard Chartered, SOL may be overpriced at the moment in comparison to Ethereum. Also, Solana’s token supply is increased at a rate of 5.5% per annum while Ethereum has a rate of 0.5% per annum. This directly affects real staking returns where Solana has a yield of 1% and Ethereum has a yield of 2.3%. Another advantage that is in favor of Ethereum is the availability…
The post Solana “Richly Valued” Against Ethereum, But Could Outshine if Trump Wins: Standard Chartered appeared on BitcoinEthereumNews.com.
A report from Standard Chartered suggests that Solana is overvalued compared to Ethereum based on key metrics. The U.S. election could influence the performance of Solana, Ethereum, and Bitcoin. Solana (SOL) is projected to lead the cryptocurrency market in growth by 2025, outpacing both Ethereum (ETH) and Bitcoin (BTC), according to a recent report by Standard Chartered. The British multinational bank predicts that Solana could rise five-fold in value especially if Donald Trump wins the forthcoming US presidential election. Geoffrey Kendrick, Global Head of Digital Assets Research at Standard Chartered, presented new valuation metrics for layer-1 blockchains with a focus on Solana and Ethereum. He compared Solana’s current market capitalization to Ethereum when it comes to several historical indicators. Solana’s market cap to fees ratio is 250x compared to Ethereum which is at 121x. This high valuation is based on the market expectations of Solana’s future growth potential, which Kendrick expects to be between 100 to 400 times the current throughput of Solana in the coming years. This growth potential, he believes, is easier to achieve under a Trump administration given the president’s friendly disposition towards digital assets. Report Contrasts Token Supply and Staking Yields While Ethereum has been the leading layer-1 blockchain network for quite some time now, the increased activity and the growth of Solana’s token price have raised the question of whether the network might soon dethrone Ethereum. However, according to Standard Chartered, SOL may be overpriced at the moment in comparison to Ethereum. Also, Solana’s token supply is increased at a rate of 5.5% per annum while Ethereum has a rate of 0.5% per annum. This directly affects real staking returns where Solana has a yield of 1% and Ethereum has a yield of 2.3%. Another advantage that is in favor of Ethereum is the availability…
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