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Standard Chartered has projected that Solana (SOL) may experience significant growth in the coming years but is likely to underperform Ethereum (ETH). While Solana’s price is expected to nearly double by the end of this year, the cryptocurrency’s reliance on memecoins could hinder its long-term potential, according to the investment bank.

Solana Price Predictions Through 2029

Geoff Kendrick, the Head of FX and Digital Assets Research at Standard Chartered, recently shared his analysis of Solana’s trajectory over the next several years. Kendrick forecasts that Solana could reach $275 by the end of 2025, a substantial increase from its current trading price of $176.72. By 2029, Solana’s value could climb as high as $500.

However, even with these optimistic projections, Solana is expected to lag behind Ethereum. According to the same analysis, Ethereum’s price is projected to rise to $4,000 by the end of 2025 and could reach $7,500 by 2029, showcasing stronger long-term growth potential compared to Solana.

Memecoins: A Double-Edged Sword for Solana

Kendrick attributes Solana’s potential underperformance to its heavy reliance on memecoin trading activity. While memecoins have contributed to Solana’s recent success, Kendrick described this dependency as a “double-edged sword.” He noted that while memecoins might provide short-term gains, their growth is not sustainable in the long run.

“Going forward, I think we are past peak-memecoin,” Kendrick explained, emphasizing that memecoins now represent a risk factor for Solana’s ecosystem.

Kendrick highlighted that the market is currently applying a discount to Solana’s application-layer revenue, reflecting the slowing growth in the memecoin sector. This could have a direct impact on Solana’s overall activity and revenue streams in the future.

The Decline of Memecoin Activity

The total market capitalization of memecoins peaked at $100 billion in December 2024, with Solana’s memecoin activity reaching its highest levels in January 2025 during the most recent bull market rally. However, memecoin activity has since shown signs of decline, raising concerns about its sustainability.

Ark Invest CEO Cathie Wood also weighed in on the topic earlier this year. She stated that most memecoins are likely to lose their value over time. Despite this, Wood maintained a positive outlook on both Ethereum and Solana, suggesting that these platforms will continue to strengthen in the years to come, even as memecoin activity diminishes.

Key Takeaways for Investors

For investors considering Solana, it’s essential to weigh both the short-term opportunities and the longer-term risks associated with its reliance on memecoins. Here are some tips to keep in mind:

  • Monitor market trends: Keep an eye on the memecoin sector and its impact on Solana’s performance.
  • Diversify your portfolio: Consider balancing investments in Solana with other assets like Ethereum, which may offer stronger long-term growth.
  • Evaluate fundamentals: Focus on Solana’s underlying technology and ecosystem development beyond memecoins.

As the cryptocurrency market continues to evolve, understanding the factors influencing asset performance is crucial for making informed investment decisions. Both Solana and Ethereum remain key players in the blockchain space, but their growth trajectories may differ significantly in the years ahead.

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