- Solana may need to attract more developers despite the recent recovery.
- Depending on the state of the market in 2030, SOL may either be worth tens or thousands of dollars.
In the crypto market, it is not unusual for a project that was once pronounced irrelevant to revive. In Solana’s [SOL] case, the recovery since the FTX contagion has been one that may not be forgotten for a long time. For this reason, asset management firm VanEck, released a report discussing the future potential of the blockchain.
How much are 1,10,100 SOLs worth today?
Solana rides on the SCP waves
According to VanEck, Solana’s strides with respect to Smart Contract Platforms (SCPs) is one factor that has kept the project influential. By definition, SCPs are systems that do not require any third-party interference when executing contracts on a blockchain.
While there are other SCP-compatible blockchains like the BNB Chain and Ethereum [ETH], none has been able to match Solana’s dominance in the sector. The VanEck report noted that the sector is positioned to experience a surge in adoption going forward.
But it also noted that to grow exponentially, it would need a killer application. VanEck explained no other chain fits that position other than Solana.
“And the chain that hosts that killer application stands to benefit immensely from the activity generated by that app. In this note, we model a scenario in which Solana is the first blockchain to host a single application that onboards 100M+ users”, VanEck noted.
Not yet at Ethereum or Polkadot’s level
As a result of the SCP dominance, Solana’s reign in terms of developer market share over other blockchains like Aptos [APT] has been very wide. The report noted that Solana’s increasing use case and “ground-breaking” technology have been responsible for the hike.
However, when compared with the likes of Polkadot [DOT] and Ethereum, the Anatoly Yakovenko-led blockchain lagged behind. One reason Solana trailed here was because of the numerous times the network has experienced outages.
VanEck also mentioned the complexity of the Solana Virtual Machine (SVM) as one of the reasons the blockchain has been behind. The SVM is the system powering Solana’s ability to handle thousands of transactions per second.
The report explained the reason for the circumstance, highlighting that:
The future could be brighter for SOL
However, the asset management firm said it expected Solana to improve going forward especially as it has had a 100% uptime since March 2023. Meanwhile, Solana’s recovery and glaring potential were not just evident in VanEck’s report.
Artemis, an institutional digital asset data platform, also noticed the project’s growth.
According to a 26 October post on X (formerly Twitter), Artemis noted that it was “wowed” by Solana’s resurgence. Some of the metrics used in coming to this conclusion include the TVL, the DEX volume, active addresses, and transactions.
Over the past week L1s have started to see a shift in sentiment.$SOL activity for the month has translated to sharp increased in DEX volume activity as TVL and users have seen an uptick.
Is this the start of a new trend? pic.twitter.com/wfFyYlvBVS
— Artemis (@artemis__xyz) October 26, 2023
Realistic or not, here’s SOL’s market cap in ETH terms
Regarding its price action, VanEck predicted that it could have an average trading value of $335 by 2030.
But in a bull phase, the report projected a jump to $3,211 in the same year. And in a torrid market condition, it noted that SOL won’t trade below $10.