Solana's Bright Future
According to Standard Chartered, Solana (SOL) is expected to outperform Ethereum (ETH) and Bitcoin (BTC) by 2025, particularly if Donald Trump wins the upcoming U.S. presidential election. The bank predicts a fivefold increase in SOL’s price under this scenario.
Bitcoin's Promising Prediction
In a separate projection, Bitcoin is anticipated to reach $200,000 by the end of 2025, regardless of the election outcome. This optimistic forecast is based on new valuation metrics for layer-1 blockchains.
Valuation Insights
Geoffrey Kendrick, the Global Head of Digital Assets Research at Standard Chartered, noted that Solana is currently valued at 250x based on its market cap-to-fees ratio, compared to 121x for Ethereum. This suggests that the market expects significant growth for Solana, with a projected 100-400x increase in throughput in the coming years.
Impact of Election Outcomes
Kendrick elaborated on different scenarios depending on the election results:
- If Trump wins: SOL will outperform ETH, and ETH will outperform BTC. Projections include a 5x increase for SOL, a 4x increase for ETH, and a 3x increase for BTC by 2025.
- If Kamala Harris wins: The dynamic shifts to BTC outperforming ETH, and ETH outperforming SOL.
Ethereum Price Targets
Specific price targets were also shared for Ethereum, estimating it could reach $10,000 under a Trump administration and $7,000 under a Harris administration.
This analysis underscores how significantly political outcomes can influence the cryptocurrency market, highlighting the interconnectedness of digital assets and geopolitical events.
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