Solana (SOL) Could Hit $700 Next Year, But There’s a Catch: Standard Chartered

British multinational bank Standard Chartered predicts that Solana (SOL) could experience a 5x increase in value by the end of 2025 if Donald Trump wins the 2024 United States presidential election. 

The bank also projects that Solana would outperform Ethereum (ETH), while ETH is anticipated to surpass Bitcoin (BTC) during the same timeframe.

SOL to Gain 5X Under Trump

In a recent report, Geoffrey Kendrick, the bank’s Global Head of Digital Assets Research, estimated that under a Trump administration, SOL could achieve a 5X return. Meanwhile, ETH and BTC may experience 4X and 3X gains, respectively, by the end of 2025.

Kendrick pointed out that Solana’s current valuation is considerably high when compared to Ethereum across all historical metrics. Analyzing the market cap-to-fees ratio, Solana is valued at 250x, while Ethereum’s ratio stands at 121x. 

According to the report, the high valuation indicates strong market expectations for Solana’s future development, with projections estimating a potential 100-400x increase in network throughput over the coming years.

Kendrick emphasized that for his forecast to materialize, Solana must achieve a substantial increase in its network throughput. He highlighted the significance of successfully deploying Firedancer, a third-party validator client aimed at enhancing the efficiency of the Solana network. 

Additionally, Kendrick indicated that a Trump administration may be more favorable toward Solana’s ecosystem, potentially enhancing the chances of launching a Solana exchange-traded fund (ETF). 

He further noted that for Solana to achieve the projected valuations, it must establish a strong presence in various sectors, including finance, consumer services, and decentralized physical infrastructure (DePIN), where high transaction throughput is critical.

ETH to Hit $7K Under Harris

Kendrick also offered an alternative projection if Kamala Harris wins the next U.S. president. 

According to him, Bitcoin is expected to outperform Ethereum, which would, in turn, outperform Solana under a Harris administration. He anticipates Ethereum reaching $7,000 by the end of 2025 in such a scenario, while Bitcoin could rise to $200,000, regardless of the election outcome on November 5.

At press time, Solana (SOL) is valued at $143.50, representing a 44.82% decline from its all-time high of $259.96. The cryptocurrency has a trading volume of approximately $2.3 billion, reflecting a 23.20% decrease in market activity compared to the previous day, according to data from CoinGecko.