A report Standard Chartered believes that Solana is priced too high compared with Ethereum (ETH). Geoff Kendrick’s team, who is Head of Global Digital Asset Research for Standard Chartered, has found metrics which support the idea that SOL trading prices are inflated.
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The ratio of market capitalization and revenue from network fee was one measure. It was 250 for Solana, and 121 for Ethereum. The ratio shows that SOL’s price is over twice as high as ETH. SOL is also increasing in supply at a rate of 5.5% per year, according to the group. The supply of ETH, on the other hand, is growing at a 0.5% annual rate.
In the report, it is also noted that most of the blockchain developments are done on ETH. Around 38% use the ETH blockchain, while only 9% are using the SOL.
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Standard Chartered more bullish on Ethereum than Solana
It is not the only time the bank expressed its enthusiasm for Ethereum.
The year 2023 reportStandard Chartered has predicted that ETH will reach a value of $8000 by 2026. The price of ETH will increase by 228.6% if it reaches $8,000 in 2026. Bank of America also thinks that cryptocurrency’s second largest market capitalization will reach $35,000 at some point. Kendrick made the following statement in his report: “We see the $8,000 level as a stepping stone to our long-term ‘structural’ valuation estimate of $26,000-$35,000.“
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Solana, (SOL), has outperformed Ethereum in the last two year despite the bullish outlook. SOL’s price dropped to below $10 in 2022 following the collapse of FTX. In the past year, SOL has recovered remarkably. The price briefly exceeded $200.
Standard Chartered notes also that a Trump win in the US election could result in SOL performing better than ETH.
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Source: watcher.guru
