Everyone’s talking about Van Eck’s report that provides an explosive price target for the popular crypto.
When an institution like Van Eck provides a price target, the market listens. As of June 30th, Van Eck has more than $107 billion in assets under management (AUM). The firm has also been one of the largest crypto bulls on Wall Street and it has the lofty price targets to prove it.
Earlier this week, Van Eck issued a bullish report on Solana, highlighted by the potential for it to reach 50% of Ethereum’s market cap. At current prices, Van Eck estimates that Solana’s true value is around $330 per SOL. This is more than double Solana’s current price of about $148.
How does Van Eck justify a price target that is more than 100% higher than the current price?
It focuses on technological advantages that most people in crypto already know Solana has. These include a much higher transaction per second (TPS) rate and a clear advantage in daily active users. Compared to ETH, Solana can handle 3,000% more transactions per second and has 1,300% more daily users.
Van Eck also focuses on the ratio between the two tokens as a gauge of value. Most are familiar with the BTC/ETH ratio which recently hit a four-year low. To compare, Solana is just 22% of Ethereum’s market cap, a number that Van Eck says can reach 50% in the coming years.
Those who follow the crypto space know that Van Eck has given some pretty bullish price targets in the past. Earlier this summer, the firm provided a $2.9 million base case for Bitcoin and a bull case of $52 million by 2050. As for ETH, Van Eck has some fairly lofty price targets as well. By 2030, Van Eck expects ETH’s price to hit a minimum of $22,000.
Solana Price Target: Meme Coins Are Not the Future for SOL
When you think of Solana, you probably think of meme coin trading. That’s because popular meme coins like dogwifhat ($WIF) have gone mainstream and become nearly household names.
While meme coin trading will remain a staple in the Solana ecosystem, Van Eck believes that DeFi is Solana’s true future. The blockchain’s advantage in speed and price will be more appealing to institutions that have not shown as much interest in adopting Ethereum.
Wall Street’s adoption of Solana could have a major impact on the price and is one of the driving forces behind Van Eck’s bullish outlook.
If you are a SOL bull, don’t get too excited just yet. The price target of $330 is nice but that’s just what its fair value is now. You should be more excited about Solana being 50% of Ethereum’s market cap. As the crypto majors like Bitcoin and Ethereum continue to all-time highs, Van Eck expects Solana to follow right alongside them.