Overview
VanEck, a renowned global asset manager, recently released a report titled “VanEck’s Base, Bear, Bull Case: Solana Valuation by 2030,” authored by Matthew Sigel and Patrick Bush. The report provides insightful projections for Solana’s long-term valuations.
Projected Solana Valuations
VanEck’s report outlines multiple scenarios for Solana’s valuation by 2030. According to their analysis, the anticipated SOL price ranges from a bearish $9.81 to a bullish $3,211.28. These valuations are based on varying market shares and revenue estimates across key sectors.
Valuation Framework
In VanEck’s baseline scenario, their standardized valuation framework predicts Solana achieving a token valuation of $335. This estimate is derived from projecting a terminal valuation multiple on Solana’s SOL tokens, considering an anticipated real rate of return.
Solana’s Role in Blockchain
VanEck assumes that a significant portion of businesses and their income will be derived from blockchain activities or will involve blockchain technology in various capacities. Solana is expected to support applications with over 100 million users, marking a significant milestone in the blockchain industry.
Comparison with Ethereum
Despite its potential, Solana faces challenges in surpassing Ethereum in hosting the majority of the world’s crypto transactions by 2030. While Solana’s network and execution engine offer higher throughput and greater possibilities, widespread adoption among crypto users and developers is yet to be achieved. Currently, Solana has a lower share of crypto total value and daily active users compared to Ethereum.
Price Predictions
VanEck’s price prediction for Ethereum, based on a 70% market share of value transmitted over open-source blockchains, is $11,800. If Solana can achieve Ethereum-like dominance, the bullish scenario forecasts $51.8 billion in revenue and a price target of $3,211 in 2030.
Conclusion
As of the latest update, SOL was trading at $31.97. VanEck’s optimistic prediction of $3,211 represents a remarkable 10,600% increase in Solana’s value in the coming years.
