Standard Chartered Bank has initiated coverage on SOL with a long-term bullish outlook, projecting the token to climb from around $175 to $500 by 2029. However, the bank warns that Solana is likely to underperform Ethereum in the near term due to its heavy reliance on memecoin trading activity.

Geoffrey Kendrick, the bank’s global head of digital assets research, noted that while Solana excels at processing high volumes of transactions at low fees — a feature that has made it the go-to chain for memecoins — this utility may not be sustainable.

“Solana dominates memecoin trading,” Kendrick said, “but the sector seems to have peaked, and markets are discounting future earnings from this trend.”

He emphasized that although Solana currently appears undervalued based on a market cap-to-GDP framework, its limited diversification beyond speculative trading is a key concern.

In contrast, Ethereum continues to benefit from a broader and more sustainable ecosystem of applications.

Despite this, Standard Chartered remains optimistic about Solana’s long-term value, suggesting that with time and further development beyond trading, the blockchain could achieve significant price appreciation.

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Filed under: Bitcoin - @ May 27, 2025 10:11 pm