Solana Could Hit $275 by Year-End, $500 by 2029-End: Standard Chartered
Standard Chartered (STAN), in a recent research report initiating coverage of Solana (SOL), forecasts that the cryptocurrency will underperform Ether (ETH) over the next two to three years. The bank projects the ETH/SOL ratio to rise from the current 14 to 17 by the end of 2027, before experiencing a subsequent decline. This projection translates to a price prediction of $275 for SOL by the end of 2025 (from its current price of $175), increasing to $500 by the end of 2029, according to Geoff Kendrick, head of digital assets research at Standard Chartered.
The bank’s assessment highlights Solana’s prominent role as the preferred blockchain for memecoin trading. However, this association with the highly volatile memecoin sector contributes to SOL’s relatively low valuation compared to its application revenue. Standard Chartered observes that memecoin activity on Solana appears to have peaked, indicating a concerning trend of declining usage. This combination of decreasing usage and a comparatively low price is viewed negatively by the bank.
While acknowledging Solana’s potential to dominate future sectors requiring high transaction volumes, low fees, and fast transaction speeds—particularly in finance and traditional consumer applications—the report emphasizes the considerable time required for the blockchain to achieve significant scale in these areas. This anticipated slow growth in mainstream adoption contributes to the bank’s bearish outlook on SOL’s performance relative to ETH in the short to medium term.
The report’s conclusions suggest a cautious approach to investing in SOL, emphasizing the risks associated with its heavy reliance on the memecoin market and the challenges it faces in penetrating larger, more established sectors. The predicted price increases are long-term projections, indicating that significant growth may not be realized for several years, and are contingent upon Solana successfully expanding beyond its current niche. The bank’s analysis provides valuable insights into the current market dynamics surrounding Solana and the potential challenges it faces in achieving broader adoption.
