By the end of 2025, Solana could increase fivefold if Republican candidate Donald Trump wins the U.S. presidential election, according to Standard Chartered, as reported by The Block.
In this scenario, digital gold would quadruple in value, while Ethereum would triple.
Experts added that if Democrat Kamala Harris takes the White House, Bitcoin would outperform Ethereum, and Solana’s growth would lag behind the second-largest cryptocurrency by market capitalization.
The divergence is attributed to the more likely approval of a SOL-ETF if Trump wins.
Standard Chartered noted that the asset is currently overvalued compared to its main competitors.
The market capitalization to network fee revenue ratio has reached 250, more than double Ethereum’s 121. Solana’s supply increases by approximately 5.5% annually, while Ethereum’s inflation is about 0.5% per year, they added. Consequently, the real staking yield of SOL is equivalent to 1% compared to 2.3% for ETH.
Analysts also pointed out that 38% of all known developers in the industry work within the Ethereum ecosystem, while Solana’s share is 9%.
To support such ambitious valuations, the successful activation of the Firedancer update, which could increase throughput to 1 million TPS, is required.
Additionally, Solana needs to secure a dominant position in several sectors, including finance, consumer services, and DePIN.
Santiment noted a significant increase in developer activity on Solana over the past week.
?? Here are crypto’s top Solana ecosystem projects by development. Directional indicators represent each project’s ranking rise or fall since last month:
➡️ 1) @solana $SOL ?
➡️ 2) @wormholefdn $W ?
➡️ 3) @pythnetwork $PYTH ?
? 4) @jito_sol $JTO
➡️ 5) @neonlabsorg $NEON
?… pic.twitter.com/4MiC53sJhQ— Santiment (@santimentfeed) October 8, 2024
Standard Chartered anticipates Bitcoin reaching $200,000 by the end of 2025, regardless of the election outcome on November 5.
Ethereum could rise to $7,000 if Harris wins, and to $10,000 under Trump, specialists indicated.
According to Bloomberg analyst Eric Balchunas, the likelihood of a Solana-ETF being registered in the U.S. in 2024 is zero, as it is in 2025. Only a change in leadership at the SEC could alter the situation.
Earlier, media reports listed potential candidates for the head of the agency if Trump wins.