VanEck Sets $330 Solana Price Target: Can It Challenge Ethereum?

Over the past 24 hours, Solana has reaffirmed a break above the $150 resistance threshold with a 1.38% rise. This victory comes as VanEck sets a $330 Solana price target, citing its potential to challenge Ethereum’s dominance.

Indeed, Solana appears to have settled into a new bullish trajectory, maintaining a 9.7% markup since Thursday’s Fed-rate-fueled breakout, making it one of the best performers among other notable altcoins.

This positive momentum is also reflected in a 26.72% drop in trading volume, now at $2.075 billion, suggesting that recent volatility is beginning to ease.

Solana vs Ethereum: Metrics Drive Bullish Forecast

In a September 25th report, Matthew Sigel, head of digital assets research at VanEck, highlighted Solana as undervalued, projecting its potential to capture up to 50% of Ethereum’s current market capitalization and a valuation of $330.

This bullish outlook is driven primarily by Solana’s unrecognized superior speed and transaction processing metrics.

The Solana network’s throughput exceeds that of Ethereum by over 3,000%, enabling it to process thousands of transactions per second (TPS). Additionally, Solana boasts over 1,300% more daily active users compared to Ethereum, benefiting from transaction fees that are a staggering 5,000,000% cheaper on its network.

Sigel argues that Solana’s stark advantage in speed and cost efficiency gives it a significant edge over Ethereum for payments and remittances.

He specifically notes the potential for stablecoins to leverage Solana’s superior processing capabilities, potentially passing on substantial cost savings to users.

The ‘Lag’ Keeping SOL Behind: Can the Solana Price Push to $330?

As retail investors are “slowly waking up” to Solana’s potential to challenge Ethereum as a smart contract platform, VanEck noted a puzzling “lag” in institutional adoption despite these technological advantages.

Sigel attributed this gap to a hesitancy among institutions to transition from established “blue-chip” assets like Ethereum in favor of the relatively younger Solana.

While Ethereum continues to benefit from its first-mover advantage, VanEck’s analysis suggests this lead may be eroding quickly as users increasingly shift to faster layer-1 networks, with Solana being a significant contender in this movement.

As the crypto market continues to develop, Solana’s technological prowess could position it for significant growth in the coming months. Notably, technical indicators lend credibility to this prospect.

Most significantly, the formation of a cup and handle pattern since late 2021 favors a bullish continuation of Solana’s long-term price appreciation, indicating a temporary pause in a prevailing uptrend.

Currently, Solana remains bound within the channel that forms the handle, consolidating before its next move amid the current uncertain market sentiment.

However, a breakout from this channel seems more credible this week, as the Chaikin Money Flow (CMF) has entered positive territory at +0.13. It joins the Relative Strength Index (RSI), which retains its bullish lean just above neutral – indicative of prevailing buying pressure.

This reaffirms the MACD line’s bullish trajectory, nearing a crossover with the signal line, which could see the bulls lead the next push.

With a breakout of the upper bound of the handle, VanEck’s price target of $330 becomes credible, with the potential to exceed that mark and approach $400.

This New Opportunity Has Higher Gains Potential

Although traders may want to cling to this Solana opportunity, it is unlikely to unfold in the near term, and much less so quickly.

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