British bank Standard Chartered dropped a prediction that Solana (SOL) could rise to $275 by the end of 2025 and $500 by the end of 2029. Geoff Kendrick, head of digital assets research at Standard Chartered, shared these forecasts in a report published Tuesday. Currently, Solana is trading for $178.50, so this outlook is looking at a 54% to 180% surge. 

🚨JUST IN: Standard Chartered initiates Solana coverage, forecasting $SOL to reach $275 by end of 2025 and $500 by 2029. It says Solana trades ‘cheap’ on market cap-to-GDP, unlike BNB which trades ‘rich’ due to its Binance link. pic.twitter.com/ww9mLhkyP8

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However, even with this, the bank still expects Solana to underperform compared to Ethereum over the next two to three years. Standard Chartered predicts the Ethereum-to-Solana price ratio will increase from about 14 today to 17 by the end of 2027. Kendrick explained this means ETH will keep a lead over SOL during this period.

Solana is known as the favorite blockchain for trading memecoins, which are highly volatile cryptocurrencies because they are driven by internet trends. However, Standard Chartered noted that memecoin activity on Solana seems to be “past its peak.” The bank said, “Declining usage and trading ‘cheap’ are not a good mix.” This means Solana price may suffer because its main use is slowing down.

The bank also pointed out that Solana trades at a low price compared to its application revenue, which they call its GDP. This revenue comes from the projects and apps built on Solana’s blockchain. In comparison, Binance’s BNB trades at a higher value because it benefits from Binance’s centralized exchange.

Looking ahead, Standard Chartered believes Solana is well-positioned to support sectors that require fast transactions with low fees. These include financial services, social media apps, and decentralized physical infrastructure networks. However, they warned that it might take a few years for these areas to grow enough to make a big impact on Solana’s value.

Solana has faced some challenges, including network outages and attacks. Recent upgrades, like the Firedancer validator client and new network tools, aim to improve its reliability. Meanwhile, Ethereum benefits from a more decentralized network and strong developer support. Ethereum also holds a much larger share of total value locked in decentralized finance projects.

Kendrick mentioned, “As a result, Solana is likely to face a two- to three-year period of lower activity (as measured by GDP). SOL is also likely to continue to trade ‘cheap’ relative to its GDP until other sectors become established users of Solana,”

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