According to a report by research firm VanEck, Solana is increasingly closing the gap with Ethereum and could grow to a target price of $330.
Boasting fast transactions and low fees, #Solana has long been considered one of Ethereum's strongest competitors. While it has yet to challenge #Ethereum , VanEck believes that Solana's market capitalization growth is gaining momentum. The network has experienced quite an explosive growth, especially after its technology has been integrated by major companies.
Interest in Solana has increased in 2024, especially as the #cryptocurrency market has evolved with the emergence of cryptocurrency ETFs. These investment products have opened up the market to institutional investors, but so far only bitcoin and Ethereum-based ETFs have been approved. However, earlier this year, GSR Markets suggested that the next cryptocurrency to be approved could be Solana.
VanEck also emphasized how well Solana handles Ethereum. Solana processes 3,000 percent more transactions than Ethereum, transaction fees are about 5 million percent lower, and the number of daily active users has increased by about 1,300 percent. In addition, usage scenarios such as DeFi, payments and money transfers make Solana a hot candidate for continued growth.
In June, Van Eck filed with the U. S. Securities and Exchange Commission to float a Solana-based ETF. The company highlighted Solana's capabilities in payments, transactions and decentralized applications, calling its blockchain a censorship-resistant global state machine that doesn't depend on sharding or second-tier solutions to scale.
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