Standard Chartered Predicts Solana to Outperform Ethereum and Bitcoin by 2025

Standard Chartered’s Cryptocurrency Forecast: Solana, Ethereum, and Bitcoin Insights

Standard Chartered – According to Standard Chartered, a British multinational bank, Solana (SOL) is expected to significantly outperform Ethereum (ETH) and for ETH to outpace Bitcoin (BTC) by the year 2025. This forecast hinges on potential political shifts, particularly the outcome of the upcoming U.S. presidential election. The bank predicts a fivefold increase in SOL’s price if Donald Trump secures victory in the election.

New Valuation Metrics for Layer-1 Blockchains

Geoffrey Kendrick, the Global Head of Digital Assets Research at Standard Chartered, introduced new valuation metrics focused on layer-1 blockchains like Solana and Ethereum. Kendrick forecasts that Bitcoin could reach a remarkable $200,000 by the end of 2025, regardless of the election results. Notably, he pointed out that Solana is currently valued more highly than Ethereum across various backward-looking metrics.

Market Cap to Fees Ratio Indicates Potential Growth

“Based on the market cap-to-fees ratio, SOL is valued at 250x, compared to 121x for ETH,” Kendrick stated in a note to Decrypt. This elevated valuation signals strong market expectations for growth in Solana, with projections suggesting an increase in throughput by 100-400x over the next few years.

The Impact of Presidential Elections on Cryptocurrency Valuations

Kendrick emphasizes the potential influence of the U.S. presidential election on these cryptocurrencies’ valuations. “This rich valuation requires throughput on Solana to increase 100-400x over the next several years, something that seems more reasonable under Trump than under Kamala Harris,” he explained. In his analysis, Kendrick outlined various scenarios based on election outcomes, asserting, “SOL will outperform ETH, and ETH will outperform BTC in 2025 if Trump wins.” Under such circumstances, Kendrick projects that by the end of 2025, SOL could see a 5x increase, ETH a 4x increase, and BTC a 3x increase.

A Different Outlook Under Kamala Harris

However, the outlook shifts dramatically under a potential Kamala Harris administration. Kendrick forecasts that “under Harris, we would expect BTC to outperform ETH and ETH to outperform SOL in 2025.” This significant change underscores how political landscapes can affect market sentiments and investment strategies in the crypto space.

Price Targets for Ethereum

Providing specific targets for Ethereum, Kendrick indicated that Standard Chartered anticipates ETH reaching approximately $10,000 under a Trump administration and around $7,000 if Harris is elected.

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