Ethereum, Solana Could Double by 2031

The Yahoo Finance piece published on March 22, 2026 identifies two cryptocurrencies — Ethereum (ETH) and Solana (SOL) — as candidates that could double over the next five years, citing on-chain growth and developer activity as primary drivers (Yahoo Finance, Mar 22, 2026). Both networks have shown material divergence in performance: ETH remains the largest smart-contract platform by market capitalization while SOL has outpaced many peers in token returns during select windows in 2025–26. Institutional flows into spot and futures markets, regulatory developments in major jurisdictions, and evolving fee mechanics on each chain are the vectors most likely to determine whether a doubling is realized. This article dissects the data supporting the bullish scenarios, quantifies downside catalysts, compares ETH and SOL to peers and to Bitcoin (BTC), and places the forecast in historical context relevant to institutional investors.

Context

Ethereum's evolution since the Merge (Sept 15, 2022) changed its monetary profile and protocol economics, a structural shift often cited in bullish valuations. The Merge eliminated proof-of-work mining and materially reduced net issuance; post-Merge, several observers reported that net issuance fell by an estimated 90% relative to pre-Merge levels (Ethereum Foundation, Sept 2022), and periods of fee burning have pushed net issuance toward neutral or deflationary territory. By contrast, Solana's design trades decentralization and validator dispersion for high throughput and low nominal fees, an architecture that supported a surge in DeFi and NFT activity in 2021–2024 but has been tested by network outages and congestion events in 2022–2023 (Solana Labs incident reports, 2022–23).

The macro backdrop entering 2026 has also been consequential: crypto risk assets have shown sensitivity to U.S. real rates and regulatory sentiment. Bitcoin, often treated as the benchmark, returned X% year-to-date through early 2026 in many reporting windows (data providers vary), while ETH and SOL posted idiosyncratic returns that reflected protocol-level developments and liquidity flows into decentralized applications. Yahoo Finance’s Mar 22, 2026 article calls out ETH and SOL specifically; that identification should be read as a catalyst-focused shortlist rather than a probability forecast — the path to doubling depends on adoption, liquidity, and policy outcomes over a multi-year horizon.

Regulatory frameworks remain a material determinant. The U.S. Securities and Exchange Commission and EU MiCA-style regimes have increased compliance costs and market structure oversight for token listings and derivatives (SEC statements, 2024–26; EU MiCA, 2023–26 implementation updates). Institutional participation in futures and spot trusts has been uneven: spot ETF approvals for BTC in 2024 concentrated flows in BTC, while approvals and structures for ETH-based institutional products remain nascent and jurisdiction-specific.

Data Deep Dive

Price and market-cap context: Yahoo Finance (Mar 22, 2026) lists ETH and SOL as the two cryptocurrencies with compelling upside scenarios; CoinMarketCap snapshots on proximate dates show ETH market capitalization in the hundreds of billions and SOL in the low tens of billions, illustrating a classic large-cap versus mid-cap dynamic (CoinMarketCap, Mar 2026). The difference in market depth is relevant: a doubling for SOL requires considerably less incremental dollar demand than a doubling for ETH. For example, if ETH market cap is $200bn and SOL is $20bn, a 100% increase in SOL requires roughly one-tenth the capital inflow ETH would need, all else equal. That math explains why mid-cap tokens can produce higher percentage returns but also why they are exposed to greater liquidity and concentration risks.

On-chain and developer metrics: active addresses, transaction counts, and developer commits diverged through 2024–26. Ethereum retained the largest developer community by reported metrics (GitHub commits and developer surveys), with developer activity typically cited as a proxy for long-term innovation potential (Electric Capital / GitHub developer reports, 2023–25). Solana displayed materially higher transaction throughput and lower fees per transaction in peak periods, which supported certain classes of applications such as high-frequency gaming and microtransactions. However, network reliability (outages in 2022–23 including a protracted halt on Jan 4, 2023) has dampened confidence and can increase the discount applied by institutional counterparties when evaluating custody and settlement risk (Solana Labs incident reports, 2023).

Benchmark comparisons and historical precedents: comparing ETH and SOL to BTC highlights differences in correlation and beta. Historically, during risk-on episodes BTC has led gains, but ETH often exhibits higher beta to BTC and to risk assets given smart-contract demand cycles. In 2021–22, ETH outperformed BTC during DeFi and NFT-led rallies; in subsequent consolidation periods ETH’s relative performance has been mixed. SOL has, at times, shown outsized percentage moves against its own baseline — for instance, double-digit monthly returns in specific 2021–22 rallies — but with deeper drawdowns when liquidity dries up. These historical patterns suggest that a doubling for either token is feasible but asymmetric in probability and capital requirements.

Sector Implications

A double in ETH’s price over five years would have structural implications for the broader smart-contract ecosystem. Higher ETH valuations reduce the relative cost of collateralized stablecoins denominated in ETH-based assets and can improve the economics of staking and liquid-staking derivatives. If ETH were to double, staking yields and validator economics could attract additional institutional capital into liquid-staking products, which would reshape derivatives markets and custody services. Conversely, regulatory classification of ETH across major jurisdictions (commodity vs. security) would remain a decisive factor for institutional product availability and adoption.

For Solana, a doubling implies restored market confidence and a sustained improvement in uptime and developer engagement. Given Solana’s lower market cap base, event-driven tokenomics — such as renewed VC-backed dApp growth, re-architected fee markets, or major integrations with payments rails — could more easily produce outsized percentage returns. However, a doubling in SOL would also force custodians, prime brokers, and exchanges to revisit risk limits and margin frameworks because of SOL’s technical and liquidity idiosyncrasies.

Ecosystem spillovers: both scenarios would ripple into tokenized credit, DeFi collateral sets, and institutional balance-sheet allocations. Larger ETH valuations could expand the use of ETH as primary collateral in DeFi lending and liquidation mechanisms, while SOL’s expansion could concentrate more of its market into sector-specific applications (gaming, micro-payments) that are less substitutable with ETH. These outcomes carry operational consequences for custody providers, OTC desks, and market makers that must price protocol-level risk and network reliability into spreads and capital charges.

Risk Assessment

Downside scenarios are materially credible and asymmetric. For ETH, adverse regulatory rulings that impose security-classification constraints, or a significant upgrade failure that reintroduces serious issuance or staking concerns, could depress valuations. For SOL, repeat or unresolved network outages, sustained developer attrition, or concentrated token unlocks could trigger large drawdowns. Liquidity risk is paramount: mid-cap tokens can double on relatively modest incremental flows but can also fall sharply when liquidity withdraws, as historical crises in 2018 and 2022 illustrated for different segments of the market.

Macro and correlation risks: rising real yields, stronger dollars, or risk-off impulses in equities materially reduce risk appetite for crypto, compressing valuations across the board. A repeat of the 2022-style liquidity shock that tightened funding and correlated selling could erase gains quickly. Counterparty and custody risk remain non-trivial; institutional investors will price these into expected returns via higher required returns or steeper haircuts on collateral.

Operational and governance risk: both protocols have unique governance and upgrade pathways. ETH’s client diversity and longer upgrade cycle create a different upgrade risk profile than SOL’s faster-moving roadmap. Governance outcomes — such as fee changes, burn-rate adjustments, or validator incentives — will change token supply trajectories and therefore valuation frameworks. Institutions must model supply shocks, unlock schedules, and on-chain fee dynamics when assessing return scenarios.

Outlook

Under a base-case macro scenario with modest institutional adoption and neutral regulatory evolution, a measured appreciation for ETH and SOL is plausible, with differing probabilities. ETH’s path to doubling is driven by adoption of L2s, deflationary burn mechanisms tied to fees, and a broadening of institutional product availability; the necessary capital to double ETH is large but could be accumulated via incremental inflows to staking, liquid-staking products, and institutional custody over five years. SOL’s path is thinner but faster: successful network hardening, renewed developer momentum, and niche application growth could push SOL higher with less absolute capital.

Time horizons matter: five years include multiple monetary and regulatory cycles. The market can rapidly reprice narratives; therefore, scenario analysis should embed shock events, such as regulatory clampdowns, macro tightening, or technological failures. Investors and allocators focusing solely on percentage upside should complement that view with liquidity stress tests, counterparty backstops, and explicit operational due diligence.

Fazen Capital Perspective

Fazen Capital views the claim that ETH and SOL could double as a useful stress-test of two very different investment archetypes: ETH represents a large-cap, protocol-economics trade anchored in broad developer and institutional adoption, while SOL is a higher-volatility, execution-risk play that benefits more from concentrated product-market fit. Contrarian outcomes are plausible — for example, incremental fragmentation of DeFi activity onto multiple L2s and alternative execution layers could cap ETH’s upside even as aggregate on-chain activity rises. Conversely, if SOL’s technical roadmap focuses more on decentralization and governance maturity, its relative valuation multiple could re-rate meaningfully versus 2025 levels. Our non-obvious insight: the most likely path to outperformance for either token is not purely speculative retail inflows but a structural shift in how traditional counterparties (custodians, asset managers, clearinghouses) price and provide access to these tokens. That’s an institutional market-structure story, not just a user-adoption narrative. Read more on our institutional view and macro approach at Fazen Capital Insights and on how custody and liquidity frameworks evolve at Fazen Capital Insights.

Bottom Line

Ethereum and Solana can both double by 2031 under specific adoption and market-structure scenarios, but the probability paths and capital requirements differ materially; ETH's case is scale-driven, SOL's is execution-driven. Investors should prioritize liquidity, custody, and regulatory pathways when assessing multi-year upside.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.