Standard Chartered has initiated coverage on Solana (SOL), assigning a $275 price target for year‑end 2025—implying over 50% upside from current levels around $175 . While the bank expects Solana to lag Ethereum over the next few years, it highlights key structural advantages and emerging use cases that could drive long-term growth.
Why Solana Trades “Cheap” Relative to Its On‑Chain GDP
Despite leading in memecoin trading volume thanks to its fast, low‑cost transactions, Solana’s market cap‑to‑GDP ratio remains below peers. Standard Chartered’s Geoff Kendrick notes that:
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Memecoin activity is heavily discounted by markets, treating short‑term hype as unsustainable.
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High fees during peak usage have raised questions about the durability of current revenue streams.
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Aggressive discount factors applied to Solana’s future earnings have kept its valuation depressed.
The Memecoin-Driven Stress Test
Most of Solana’s on‑chain revenue today comes from decentralized exchanges facilitating high‑volume, low‑value trades. This has:
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Proven network throughput and reliability.
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Generated short-term fees that stress-test validators.
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Masked the need for broader application diversity.
Long‑Term Catalysts: Beyond Memecoins
Standard Chartered identifies three high‑growth sectors that could unlock SOL’s potential over the next 2–3 years:
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Decentralized Social Platforms: Leveraging Solana’s scalability for real‑time interactions.
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High‑Throughput DeFi Applications: On‑chain lending, derivatives, and on‑ramp services.
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Infrastructure Services: Cross‑chain bridges, oracles, and Layer‑2 enhancements.
Tracking Solana’s Performance
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Current Price & Volume: Keep tabs on SOL’s intraday moves using FMP’s Cryptocurrency Daily API, which shows SOL trading near $175 with healthy turnover.
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Historical Usage Trends: Analyze on‑chain transaction growth and fee revenue via the Cryptocurrency Historical Data API to gauge how Solana’s “GDP” has evolved alongside network upgrades.
By blending a disciplined valuation framework with a clear view of Solana’s emerging applications, Standard Chartered positions SOL as a “catch‑up trade”—one that rewards patient investors once these new sectors begin to scale.
