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- VanEck’s digital asset research department suggests significant growth potential for Solana (SOL), a rival to Ethereum (ETH), provided certain conditions are met.
- The research department bases its forecasts on the assumption of Ethereum and potentially Solana becoming dominant open-source global settlement networks, with Ethereum reaching $51,000 in its “bull case” scenario by 2030.
Solana’s Future Upside: VanEck’s Perspective
VanEck’s digital asset research department suggests that Solana (SOL), a competitor to Ethereum (ETH), possesses immense future potential if specific conditions align. This assertion emerged from a recent research report from VanEck that outlined its forecast for Ethereum’s price in 2030.
The foundation for VanEck’s forecast, which posits Ethereum at a staggering $51,000 in its most optimistic scenario, is the notion of Ethereum being adopted widely across numerous business sectors. VanEck maintains that Ethereum could become the preeminent open-source global settlement network, housing significant commercial activity from business sectors that stand to gain from migrating their operations to public blockchains.
Translating the Outlook to Solana, Albeit with Greater Risk
Matthew Sigel, head of VanEck’s digital asset research, suggests in a Bankless interview that the same perspective could apply to Solana, albeit with a higher risk profile.
He explains that by considering the top two assumptions of penetration rate and Solana capturing 70% of all open-source blockchain activity, the upside could be considerably higher. However, this comes with a significantly elevated level of risk.
Sigel also notes that Solana’s miner extracted value (MEV) constitutes a much larger portion of the revenue line, which could lead to centralization concerns. He mentions that Solana’s chain has some opacity, with a limited number of active participants extracting value, which raises questions. As a result, despite having more potential upside in tokens like Solana and ATOM, VanEck suggests smaller position sizes due to the uncertainties.
As of the time of the report, Solana was trading at $19.86. This potential upside for Solana, as indicated by VanEck’s research, illustrates the evolving landscape of the digital asset space, where new contenders are continuously emerging to challenge established players like Ethereum. As always, investors must carefully consider the accompanying risks in such scenarios.