Grayscale Bets on Solana’s On-Chain Growth – Is $260 Just the Start?
Crypto asset supervisor Grayscale says Solana’s regular on-chain progress might drive its native SOL token above $260, achieved throughout the 2021 bull market peak.
In its newest “Crypto’s Financial Bazaar” report, Grayscale argues that Solana leads the blockchain class in consumer depend, transaction quantity, and transaction charges.
“These aren’t the solely issues that matter, however on these core blockchain fundamentals, Solana stands other than its friends,” Grayscale’s analysis group famous.
According to the report, Solana averages 4,587 customers every day and processes as much as 96,200 transactions per day, with the highest transactions per second amongst main blockchains, together with Ethereum, BNB Chain, and Tron.
Grayscale: SOL Could Push Above $260 Despite $5 Billion Annual Fee Revenue
Raydium, a decentralized alternate and core part of Solana’s DeFi infrastructure, has recorded over $1.2 trillion in volume, greater than another blockchain ecosystem. Jupiter, Solana’s main DEX aggregator, can also be the largest in the crypto industry by volume.
Pump.enjoyable, a memecoin launchpad and social app, attracts round 2 million month-to-month energetic customers and generates roughly $1.2 million in daily revenue.
Helium, a decentralized bodily infrastructure challenge targeted on cell hotspots, now offers companies cheaper than centralized options. The Solana-based protocol has 1.5 million daily users, 112,000 hotspots, and partnerships with main telecom corporations like AT&T and Telefonica.
These examples signify only a fraction of Solana’s greater than 500 distinctive functions.
As a general-purpose blockchain, Solana ranks third in NFT trading, fifth in stablecoin transaction quantity, and seventh in tokenized property.
Solana apps generate about $425 million in month-to-month charges, or over $5 billion annualized.
“We imagine that charges are the most direct measure of whole demand for a blockchain and its functions, and the information point out there’s substantial demand for Solana,” Grayscale’s analysis acknowledged.
Solana has carved out a aggressive place by providing quick and low cost transactions.
The community produces new blocks every 400 milliseconds, and transactions attain finality in roughly 12–13 seconds. Transaction prices have remained low, with customers paying a median payment of simply $0.02 per yr thus far.
Solana makes use of native payment markets, which restrict payment competitors to particular high-demand functions, and median every day transaction charges this yr have averaged simply $0.001.
Additionally, a forthcoming upgrade called Alpenglow is predicted to scale back finality time to 100–150 milliseconds.
1,000+ Solana Developers Building What Ethereum Can’t Easily Copy
Despite crypto’s consumer expertise challenges, Solana presents certainly one of the greatest new-user experiences in the business. Its quick and low cost transactions, numerous functions, and “monolithic” design remove the must bridge property between community elements. Its pockets infrastructure, led by Phantom, additionally contributes to this benefit.
Solana makes use of a definite structure known as the Solana Virtual Machine (SVM), in contrast to the Ethereum Virtual Machine (EVM) utilized by Ethereum, BNB Chain, Polygon, and Avalanche.
SVM-based functions can’t be simply transferred to non-SVM blockchains, doubtlessly creating sticky demand.
More than 1,000 full-time builders work on Solana and SVM-based functions.
The variety of Solana-focused builders has additionally grown sooner than another good contract platform over the final two years, based on Electric Capital’s blockchain developer report.
Industry Leaders Project SOL Could Push Past $260 to Hit $520 by Year-End
Given these metrics and the 7% staking reward for validators securing the community, Grayscale analysts imagine SOL is presently undervalued at $202.36.
Grayscale’s analysis states that the $260 mark achieved in November 2021 represents the honest worth for SOL primarily based on the regular progress and main metrics it has achieved since its FTX-induced crash in December 2022.
“Since the FTX chapter, SOL has considerably outperformed the FTSE/Grayscale Smart Contract Platforms Crypto Sector Index,” Grayscale confirmed.
This matches related bullish projections from business leaders.
In September 2024, Matthew Sigel, head of digital property analysis at VanEck, said Solana is undervalued and projected it to seize as much as 50% of Ethereum’s then market capitalization, equal to a $330 valuation.
VanEck additionally predicted that SOL might surge to $520 earlier than the yr’s finish.
Ray Youssef, CEO of NoOnes, advised CryptoInformation that Solana is gaining floor in the Layer 1 arms race, with robust fundamentals, rising institutional inflows, and regular income management.
He famous Solana’s resilience by means of Q3 and upcoming community upgrades that might push it towards $300 by early 2026.
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