How Solana reached 50% of Ethereum’s market cap: VanEck Research

Ethereum as soon as dominated almost all non-Bitcoin blockchain areas of the trade, however has progressively ceded its management of sure markets to rivals resembling Solana.

VanEck’s analysis arm, MarketVector, determined to delve into the battle between these two Layer-1 giants to see what it is all about.

Solana VS. Ethereum

this ReportWritten by Martin Leinweber, highlighting a few of the fundamental variations between the 2. In some instances, resembling variety of transactions, each day lively customers, and transaction charges, Solana leads by an enormous margin and bodes nicely for the way forward for blockchain.

“When evaluating Ethereum and Solana, the numbers are staggering. Solana processes 3,000% extra transactions than Ethereum, has 1,300% extra each day lively customers, and transaction charges are almost 5 million% cheaper. These enormous variations reveal Solana’s potential Effectivity and scalability benefits.

Given these statistics, it’s exhausting to not marvel why we haven’t seen a bigger migration of Ethereum (particularly establishments) to Solana.

Nonetheless, Ethereum has the sting on different metrics, resembling whole worth locked. In reality, the TVL on the world’s second largest blockchain exceeds 56%, according to In line with DefiLlama, Solana’s share is just 6%.

By way of institutional adoption, Solana lags behind its older rivals, which was additional confirmed in July this yr when the US SEC permitted 9 spot Ethereum ETFs. Though their adoption charges have strugglingthese approvals nonetheless point out that institutional traders at the moment have better curiosity in ETH.

The prospects for the Solana ETF are controversial in the USA. Different nations resembling Brazil have already green light For such merchandise, BlackRock executives lately explain“It will likely be some time earlier than we see” the U.S. Solana ETF.

Is SOL underrated?

Based mostly on a few of the indicators and developments listed above, MarketVector’s evaluation means that SOL could also be undervalued in comparison with ETH. Leinweber asserted that if Solana “continues to carry out nicely by way of transaction quantity and consumer engagement,” its market cap may attain 50% of Ethereum’s.

If this occurs, SOL may surge to $330, contemplating ETH’s present value and market cap are $2,620 and $315 billion respectively.