Standard Chartered, one of the world's largest banks, believes Solana's price could increase fivefold if Donald Trump returns to the White House.
In a recent analysis by the British bank, published by its global head of digital asset research, Geoff Kendrick, the possibility of the price of Solana, currently the fifth most capitalized cryptocurrency in the market, reaching and even exceeding $700 per unit next year was highlighted. This optimistic prediction about the price of SOL is based on the possibility that Standard Chartered sees that the United States will approve a Solana spot ETF, if Donald Trump is re-elected as president of the country.
The British bank noted that the potential approval and launch of this publicly traded investment vehicle could be a key catalyst for Solana's price growth.
Kendrick’s projection suggests that under a Trump administration, Solana could outperform other major cryptocurrencies on the market, such as Bitcoin and Ethereum.
Solana ETF approval on the horizon
The introduction of a Solana ETF in the US market could open the door to a considerable flow of institutional investments into the cryptocurrency.
Kendrick noted that a Trump administration would be more likely to facilitate the creation of such financial products, which could lead to an increase in demand for Solana and, therefore, its market price. To date, cryptocurrency ETFs have proven popular among traditional investors, as they allow for easier and less risky exposure to this type of digital asset.
Furthermore, the British bank also noted that the potential approval of a Solana spot ETF could further legitimize the cryptocurrency in the eyes of traditional and institutional investors, resulting in an increase in its price and market capitalization.
Source: CoinMarketCap
The promise of a favorable regulatory environment
In addition to the possibility of a SOL spot ETF being approved under the Trump administration, there is also the former US president's promise to create a favorable regulatory environment for the development of cryptocurrencies. Standard Chartered noted that this could also positively influence the development of the cryptocurrency. Solana price.
Kendrick indicated that the Trump administration might be more willing to support the Solana and cryptocurrency ecosystem compared to a Kamala Harris-led administration. This could include not only approving a new crypto spot ETF, but also policies that encourage innovation and development in the digital asset space.
The expert has highlighted that political support is essential in the world of cryptocurrencies, as regulatory uncertainty can have a significant impact on the price and adoption of crypto assets. In this sense, a favorable environment could allow Solana to expand into multiple sectors, including financial services and decentralized infrastructure, resulting in an exponential increase in its attractiveness and value.
Improving network performance
For Kendrick’s projections about Solana’s price to materialize, it is essential that the network improves its performance. Kendrick spoke about the implementation of Firedancer, a new validator client software that aims to increase the efficiency of the blockchain. With the ability to process up to one million transactions per second, this improvement could make Solana more competitive compared to other cryptocurrency networks.
Solana’s ability to scale and handle high transaction volumes is also crucial for its adoption in industries requiring high throughput. If Solana manages to establish itself as the preferred choice for decentralized applications and financial services, its value could increase significantly next year, approaching $700 per token.
Bitcoin and Ethereum will also experience good returns
Kendrick also projected that if Trump is re-elected as US president, Solana could outperform Ethereum and Bitcoin in terms of performance. However, according to his estimates, these two cryptocurrencies, which are the two most capitalized in the market today, could also see their prices grow significantly. In this regard, he indicated that Ethereum could see its price grow about four times and Bitcoin about three times by 2025.
In summary, the possibility of Solana’s price surpassing $700 next year is supported by several factors, including the potential approval of a spot ETF, a favorable regulatory environment, and improvements in network performance, as well as its competitiveness against other cryptocurrencies.
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