Solana (SOL) appears to be overvalued when juxtaposed with Ethereum (ETH) through various benchmarks. Yet, their respective performances, as well as that of Bitcoin (BTC), hinge heavily on the next U.S. presidential election, per a recent report from Standard Chartered Bank.

Led by Geoff Kendrick, the bank's analysts are optimistic about the prospect of favorable crypto regulations and an increased likelihood of approving Solana ETFs if Donald Trump assumes office. In contrast, a potential Kamala Harris administration might constrain smaller, riskier cryptocurrencies.

Notably, Kendrick's team predicts that under a Trump presidency, Solana (SOL) could outperform Ethereum (ETH) and Bitcoin (BTC), while a Harris-led government could yield the opposite outcome.

Despite the political uncertainties, the analysts maintain a positive outlook on cryptocurrencies overall, estimating ETH prices could soar to $7,000 under Harris and $10,000 under Trump by late 2025. The forecast for Bitcoin could reach a staggering $200,000 regardless of the election results.

Solana vs Ethereum

Ethereum remains the leading layer-1 network for blockchain applications. Recent spikes in blockchain activity and the price of Solana have led investors to speculate that a significant leadership transition might be on the horizon.

Standard Chartered's scrutiny indicates several metrics suggest that Solana is indeed overvalued compared to Ethereum, including:

• Solana's market cap to network fees ratio stands at 250, while Ethereum's is 121.
• Solana's annual supply growth is approximately 5.5%, in contrast to Ethereum's 0.5%.
• Consequently, SOL's yield sits at 1%, compared to 2.3% for ETH.
• While 38% of established blockchain developers engage in the Ethereum ecosystem, Solana commands a mere 9%.

"SOL valuation metrics imply the market is banking on a remarkably bright growth trajectory for Solana, anticipating a 100-400x increase in throughput under a Trump presidency," Kendrick elaborates. "Such optimistic valuations might be justifiable with Trump at the helm, but less so under Harris."

Achieving its current valuation will demand Solana’s assertive dominance across various high-traffic crypto sectors, including finance, consumer services, and decentralized infrastructure, as well as activating innovations to bolster efficiency.