#StandardChartered , a leading British bank, has initiated coverage on #solana ($SOL ), forecasting that the cryptocurrency could reach $275 by the end of 2025 and $500 by the end of 2029. These projections, shared in a report by Geoff Kendrick, Head of Digital Assets Research at Standard Chartered, suggest a potential 54% to 180% increase from Solana's current price of $178.50.

Standard Chartered’s Solana Outlook

The report emphasizes that Solana currently trades at a discounted valuation based on market cap-to-"GDP" (application revenue from Solana-based projects). In contrast, Binance Coin (BNB) is viewed as overvalued due to its close association with the Binance exchange. Kendrick stated:

> "Solana trades ‘cheap’ on market cap-to-GDP, unlike BNB, which trades ‘rich’ due to its Binance link."

Despite this bullish long-term outlook, the bank expects Solana to underperform Ethereum ($ETH ) over the next two to three years. Standard Chartered projects that the Ethereum-to-Solana price ratio will increase from approximately 14:1 today to 17:1 by the end of 2027, implying ETH will maintain a stronger market position relative to SOL in the medium term.

Solana’s Challenges and Growth Potential

Solana is recognized as a preferred platform for memecoin trading, but Standard Chartered’s analysis suggests that memecoin activity has likely peaked. The report notes:

> "Declining usage and trading ‘cheap’ are not a good mix."

Solana’s low valuation relative to its blockchain “GDP” could pose challenges in the near term, particularly as memecoin-driven activity declines. Furthermore, Kendrick indicated that Solana may experience a two- to three-year period of lower activity before new sectors drive growth.

However, the bank remains optimistic about Solana’s potential to support high-throughput sectors such as financial services, social media applications, and decentralized physical infrastructure networks. These industries are seen as long-term growth drivers, but it may take several years for them to meaningfully impact Solana’s value.

Network Reliability and Competitive Landscape

Solana has faced network outages and security challenges in the past. Nevertheless, recent upgrades—such as the Firedancer validator client and enhanced network tools—aim to improve performance and reliability.

In contrast, Ethereum maintains a more decentralized network, stronger developer support, and a significantly larger share of total value locked (TVL) in decentralized finance (DeFi) projects.

Conclusion

While Standard Chartered’s report underscores Solana’s long-term potential, it also highlights key risks, including the platform’s current underutilization relative to its application revenue and a potential slowdown in core activities. The bank expects Solana to trade at a discount in the short to medium term, but notes that the blockchain is well-positioned to capture growth in emerging sectors over the next several years.

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