By Michael Scott
Solana is outpacing Ethereum in key activity metrics – transactions and daily use cases.
Solana is projected to realize half the value of Ethereum, according to the latest report by VanEck’s Market Vector. Notably, the report spotlights that the Solana ecosystem saw 3,000% more transactions executed than on Ethereum. VanEck attributes such to Solanas transaction fees are lower by 5 million per cent relative to Ethereum’s.
The recent Market Vector report reveals that Solana’s active usage pimps Ethereum by 1300%. While Solana’s market value approximates 22% that of Ethereum, the report indicates the potential to attain 50% driven by institutional adoption.
The study illustrates that Solana triumphed over Ethereum in critical elements, including user experience, lower fees and transaction speed. The strengths will likely propel the SOL price to $330, doubling the current market level.
Solana Outpacing Ethereum in Metrics
The VanEck report discloses that Solana handles a 3000% higher transaction volume than Ethereum. Such adds to the accelerated spike in daily active users. The metrics support the claim that Solana technology is superior in efficiency and scalability.
Additionally, the report illustrates that transaction fees are more affordable than the amount Ethereum charges. Nonetheless, SOL’s total market value is a dwarf relative to Ethereum’s. The latter’s market value of $$321.812 billion is fivefold Solana’s $73.803 billion, per CoinGecko data.
Slow Institutional Adoption
The low market cap for Solana emerges from the failure of the network to accelerate the adoption pace among institutions. Many institutions consider Ethereum the safer option, citing its longer track record. The VanEck report shows that established investors are hesitant to allocate funds from ETH to SOL despite the clear benefits of the latter.
Besides, Solana needs equivalent institutional support, such as the Securities and Exchange Commission (SEC) approving nine ETH exchange-traded funds (ETFs) in July. In contrast, Solana ETF approval in the US is uncertain.
Bullish Outlook for ETH and SOL
The VanEck analysts are optimistic about investors diversifying portfolios by scaling units in Layer-1 blockchains and affiliated crypto like Ethereum and Solana. The analysts project stablecoins, digital payments, and decentralized finance could fuel blockchain growth in the future.
While ETH and SOL are destined for popularity, rivalry will grow. Solana is set to emerge as a fierce competitor against Ethereum owing to exceptional transaction numbers, lower fees, and surging user involvement.
Ethereum has a lifeline, given the slower pace at which Solana has won institutional adoption. Nonetheless, the latest analysis by VanEck projects market value in Solana to march half of Ethereum. Such makes it a promising asset for investors to monitor.
Beyond Memecoin Machine
Solana has recently witnessed strong net inflows tied to a solid price rally. The analysts attribute the change of the future to fresh developments in multiple, though unrelated to memecoins.
Solana has, in the past, leveraged the thrust of memecoins. The trend appears to be changing for the fifth-largest crypto by market value.
Memecoins have lived to their fund culture, with their actual adoption spreading to more use cases. However, the Solana Breakpoint Conference brought a few developments, including the Play Solana Gen1 (PSG1). Such presents novelty, being the pioneer handheld gaming device ever built for the Web3 gaming running on Solana.
Besides PSG1, Solana blockchain introduced Travala – a crypto-friendly travel booking protocol. The platform is set to facilitate flight and accommodation bookings where users can utilize Tether (USDT), SOL, and USDC Coin (USDC).
A recent bullish development for the Solana blockchain is the arrival of Franklin Templeton and Citigroup. The heavy financial weights confirmed the recent initiatives during Breakpoint.
Citigroup confirmed plans to test the cross-border payments on the blockchain, while Franklin Templeton eyes mutual fund on Solana.
The recent initiatives are reasons investors are bullish for Solana’s breakout in Q4, as recently disclosed by VanEck’s Market Vector report. The optimistic projection suggests Solana is undervalued and capable of matching half of Ethereum’s market value from slightly less than a quarter.