SOL, the native token of the Solana blockchain, has been one of the biggest winners in the crypto market lately, posting another positive price performance over the past week. This impressive price action reflects the increased interest in the altcoin and the recent shift in the climate of the overall crypto market.
Interestingly, asset management firm VanEck is one of the latest entities to show interest in the Solana token and the altcoin’s prospects.
VanEck predicts a potential 10,000% rally for Solana
In a report published on Friday, October 27, leading asset management company VanEck created several valuation scenarios for the SOL token. This price projection revolved around the current capacity and potential of the Solana blockchain.
Our Solana Rating by 2030: Base, Bear, Bull Case piece falls off in time @SolanaConf. 🔗https://t.co/5jijxItZip
— VanEck (@vaneck_us) October 27, 2023
In a base case, VanEck believes Solana could have a 30% share of the smart contract market, a significant increase from the network’s current market share. Based on this valuation framework, the asset manager expects the SOL price to reach $335 in 2030.
By comparison, Ethereum could reach a 70% market share in the value sent across open-source blockchains, according to the report. This projection yields $11,800 a possible destination for ETH’s price in 2030.
Nevertheless, VanEck presented a bull case for SOL in his analysis, putting forward a best-case scenario price target of $3,211 for the altcoin. The asset management company said:
If Solana were to avoid Ethereum’s event horizon and achieve Ethereum-like dominance, our bull case reveals $51.8 billion in revenue and a price target of $3,211 in 2030.
It would take a massive 10,000% price increase for the Solana token to reach $3,211 from its current price point. Now it is worth noting that there was also a pessimistic scenario for SOL in the VanEck report, with the token expected to trade below $10 in a bearish case.
VanEck, one of the world’s largest asset managers, has been an active participant in the cryptocurrency space in recent years. The financial colossus is one of the few companies looking to launch a Bitcoin spot exchange-trad fund in the United States.
SOL price overview
As previously concluded, Solana has been on an upward trend in recent weeks. Since initial concerns about a significant sell-off by FTX have subsided and overall market sentiment has improved, the altcoin’s price performance has been positive.
At the time of writing, the SOL token is valued at $32.19, which represents an increase of 2% in the last 24 hours. However, the cryptocurrency has retained most of its recent gains on the weekly time frame, with its price up 14% over the past seven days.
Solana price continues ascent on the daily timeframe | Source: SOLUSDT chart on TradingView
Featured image from Dreamstime/Aivaras Sakurovas, chart from TradingView