Solana
(SOL)
looks
overvalued
compared
to
Ethereum
(ETH)
based
on
several
metrics,
but
each
token’s
relative
performance
to
each
other
and
bitcoin
(BTC)
depends
heavily
on
who
will
be
the
next
president
of
the
U.S.,
a
Tuesday
report
by
Standard
Chartered
Bank
said.
Led
by
Geoff
Kendrick,
the
global
head
of
digital
assets
research,
the
bank’s
analysts
expect
more
accommodating
crypto
regulations
and
higher
chances
of
approval
for
spot-based
solana
ETFs
if
Donald
Trump
gets
elected,
while
a
Kamala
Harris-led
administration
could
weigh
on
smaller,
riskier
cryptocurrencies.
That
being
said,
the
team
forecasts
SOL
to
be
the
top
performer
of
the
three
in
a
Trump
administration,
followed
by
ether
and
then
bitcoin
(BTC).
Under
Harris
expect
the
opposite,
said
StanChart,
with
bitcoin
leading
ETH
and
SOL
bringing
up
the
rear.
The
bank’s
analysts,
however,
remain
bullish
on
crypto
no
matter
who
wins
the
November
election,
seeing
ETH
rallying
to
$7,000
by
the
end
of
2025
under
Harris
and
$10,000
under
Trump.
The
bank
previously
had
a
year-end
2025
ETH
price
target
of
$14,000.
Bitcoin
could
surge
to
$200,000
during
the
same
period,
regardless
of
who
gets
elected,
the
report
said.
Solana
overvalued
versus
ETH
Ethereum
has
been
the
dominant
layer-1
network
for
blockchain
applications,
but
Solana’s
increasing
blockchain
activity
and
SOL’s
rapid
price
surge
convinced
many
crypto
observers
that
a
change
in
leadership
is
due.
While
crypto
valuations
aren’t
standardized
as
in
traditional
assets,
Standard
Chartered
analysts
noted
several
metrics
that
showed
SOL
being
overvalued
compared
to
ETH.
SOL’s
ratio
of
market
capitalization
versus
network
fee
revenues
is
250,
more
than
double
than
ETH’s
121.
Solana’s
supply
grows
around
5.5%
annually,
while
ETH’s
token
inflation
rate
stands
around
0.5%
a
year,
they
added.
Higher
inflation
means
that
SOL’s
real
staking
yield
is
1%,
compared
to
ETH’s
2.3%.
Meanwhile,
38%
of
all
established
developers
in
the
blockchain
industry
work
on
the
Ethereum
ecosystem,
with
Solana
claiming
a
9%
share.
“SOL
valuation
metrics
suggest
the
market
is
pricing
in
a
very
bright
growth
future
for
Solana,
with
a
100-400x
increase
in
throughput
expected,”
said
Kendrick.
“Such
valuations
would
be
easier
to
justify
under
a
Trump
administration
than
a
Harris
one,”
he
added.
In
order
to
uphold
its
current
valuation,
Solana
will
need
to
claim
dominance
in
multiple
crypto
sectors
with
high
traffic
such
as
finance,
consumer
and
decentralized
physical
infrastructure
(DePIN)
and
activate
the
Firedancer
client
that
allows
increased
efficiency,
the
report
said.
