“Solana outperforms bitcoin and ethereum if Trump is re-elected”
Standard Chartered predicts that Solana (SOL) will outperform Ethereum (ETH) and Bitcoin (BTC) in 2025 if Donald Trump is re-elected as U.S. president. The bank foresees a fivefold increase in Solana’s value under Trump’s presidency. Regardless of the election outcome, Bitcoin is expected to hit $200,000 by the end of 2025.
Geoffrey Kendrick, Global Head of Digital Assets Research at Standard Chartered, introduced new valuation metrics for layer-1 blockchains, particularly focusing on Solana and Ethereum. He noted that Solana is currently highly valued compared to Ethereum, with a market cap-to-fees ratio of 250x versus 121x for Ethereum. This suggests significant market expectations for Solana’s growth, with predictions of a 100–400x increase in throughput over the coming years.
Kendrick highlights the potential impact of the U.S. presidential election on these valuations, asserting that a Trump administration would be more supportive of the digital asset ecosystem. Under Trump, Solana’s throughput growth seems more achievable, leading to a fivefold increase in its price, while Ethereum could rise fourfold, and Bitcoin threefold.
However, Kendrick also outlined a different scenario under a Kamala Harris presidency. In this case, Bitcoin is expected to outperform Ethereum, which in turn would outperform Solana. Under a Harris administration, Bitcoin would still rise, but Ethereum’s price target would be lower, reaching around $7,000, compared to $10,000 under Trump.
Overall, the report suggests that while all three cryptocurrencies are set to grow, the U.S. presidential election could significantly influence the pace of this growth.
Source: Decrypt
Ethereum staking hits all-time high, signaling strong long-term investor confidence
Ethereum’s staking activity has surged, with nearly a third of the total ETH supply now staked, reflecting strong long-term confidence among traders and tokenholders. As of October 8, 2024, data from IntoTheBlock reveals that 28.9% of all Ethereum has been staked, a significant rise from 23.8% in January. This growth suggests that ETH holders are increasingly interested in the asset and the rewards associated with staking. Of the staked Ethereum, 15.3% has been locked for over three years, further signaling faith in Ethereum’s future prospects.
Despite this staking surge, Ethereum’s price has been under pressure. After performing well in the first half of 2024 and reaching a yearly high in March, the token has since struggled and is currently hovering around $2,400. Analysts attribute the decline to selling pressure from early investors and the lack of demand for Ethereum spot exchange-traded funds (ETFs).
In response to the growing interest in staking, crypto platform Bison launched an insured Ethereum staking service, offering added protection for users. Meanwhile, Binance is preparing to list SCR, the native token of Ethereum’s Layer 2 network Scroll, for pre-market trading, further expanding Ethereum’s ecosystem.
On the regulatory and community front, Bloomberg’s ETF analyst Eric Balchunas faced criticism for a post spreading claims about Ethereum’s security, which the crypto community quickly labeled as misinformation.
In another development, Ethereum co-founder Vitalik Buterin expressed support for reducing the 32 ETH minimum requirement for solo staking. Currently worth around $80,000, this requirement may discourage broader participation. Buterin’s comments emphasize the need for more accessible solo staking options to encourage wider involvement in Ethereum’s staking ecosystem, especially for those with fewer resources.
Source: Coinpaper
Fewer bitcoin holders ready to sell
New data reveals that only 10% of Bitcoin holders are currently willing to sell, indicating increasing confidence in the cryptocurrency’s long-term value. This is a significant decline from 26% in mid-2021 and 64% in 2013, highlighting a growing trend of viewing Bitcoin as a store of value rather than a speculative asset.
Both long-term and short-term Bitcoin holders are maintaining their positions despite the coin’s price volatility. This reluctance to sell, even in the face of market corrections, suggests that more investors believe in Bitcoin’s potential for long-term growth. The cryptocurrency has experienced significant gains in 2024, further solidifying the confidence among its holders.
A major factor contributing to this trend is the increasing involvement of institutional investors. Following the approval of spot Bitcoin ETFs in the U.S., institutions like BlackRock and Grayscale have invested heavily in Bitcoin, managing billions in BTC assets. Their participation appears to be boosting the confidence of individual investors, who are more likely to hold on to their coins for the long term.
As institutional interest continues to rise and Bitcoin’s limited supply remains a core feature, demand could further increase. This growing scarcity of Bitcoin among holders may lead to even fewer willing sellers, reinforcing the belief in its long-term value.
Source: Coinpaprika