Standard Chartered: Solana Overvalued vs. Ethereum

In a recent report issued by Standard Chartered, Solana (SOL) has been identified as being potentially overpriced in comparison to Ethereum (ETH). This evaluation comes after Geoff Kendrick, leading the bank’s team for Global Digital Asset Research, disclosed findings that suggest SOL’s current market price might be excessively high.

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The report highlighted a significant disparity in the market capitalization to revenue from network fees ratio, with Solana’s ratio standing at 250, significantly higher than Ethereum’s 121. This illustrates that SOL’s price is proportionately twice as high as ETH’s. Furthermore, the report calls attention to the fact that Solana’s supply is increasing at a 5.5% annual rate, contrasting with Ethereum’s modest 0.5% growth rate.

The study also remarks on Ethereum’s predominance in blockchain development, with around 38% of developers favoring its network. In contrast, Solana is utilized by just 9% of blockchain developers, which raises questions about its valuation relativity.

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Solana and Ethereum in Standard Chartered Forecast

For those who have followed previous analyses from Standard Chartered, this perspective on Solana being overpriced relative to Ethereum might sound familiar. The bank has consistently expressed a bullish stance on Ethereum’s potential. In a 2023 forecast, they predicted a potential price surge for ETH, estimating it could reach $8,000 by 2026. Such a target signifies roughly a 228.6% increase from current levels.

Though Ethereum holds a strong position according to the bank, Solana’s recent performance shows impressive resilience. Following the 2022 FTX incident, where its value dipped below $10, SOL impressively rebounded, briefly touching the $200 threshold earlier this year. Standard Chartered also suggests that political scenarios, such as a Trump victory in upcoming elections, might favor SOL over ETH.

Considering these insights, it’s crucial for investors to remain informed about such disparities in the crypto landscape.

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