Solana lacks ‘convincing signs’ of besting Ethereum: Sygnum
Solana lacks convincing signs to overtake Ethereum as the preferred blockchain for institutions, according to Sygnum. The revenue instability, primarily due to a concentration in memecoins, undermines Solana's position. Current sentiment around Ethereum is poor, but traditional financial institutions' platform choices will shape the medium-term outlook. Ethereum is valued for its security, stability, and longevity, while Solana's revenue generation is viewed as less stable. Although Solana leads in layer-1 fee generation market share, most fees benefit validators rather than increasing token value. Ethereum's revenues exceed Solana's by 2-2.5 times. Solana could improve if it focuses on stable revenue sources like tokenization and stablecoins. Despite challenges, Solana has made progress in decentralized finance protocols and retains strong backing. Ethereum's recent adjustments may provide a sentiment boost, halting its two-year underperformance against Solana.
