{"id":128895,"date":"2025-05-09T07:18:15","date_gmt":"2025-05-09T07:18:15","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=128895"},"modified":"2025-05-09T07:18:15","modified_gmt":"2025-05-09T07:18:15","slug":"solana-lacks-convincing-signs-of-besting-ethereum-sygnum","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=128895","title":{"rendered":"Solana lacks \u2018convincing signs\u2019 of besting Ethereum: Sygnum"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsSolana does not yet have \u201cconvincing signs\u201d that it could overtake Ethereum as the blockchain of choice for institutions, as its revenue is seen as unstable due to its memecoin concentration, according to crypto bank group Sygnum.<br \/>\nIn a May 8 blog post, Sygnum said that the current sentiment around Ethereum \u201cremains poor,\u201d with the market focused on Solana\u2019s \u201ctransaction volumes and its recent dominance in fee generation.\u201d<br \/>\nHowever, Sygnum said \u201cthe medium-term outlook will primarily be shaped by traditional financial institutions\u2019 platform choices to bring their product offerings,\u201d not by sentiment.<br \/>\n\u201cWe do not yet see convincing signs that Solana would be the preferred choice as Ethereum\u2019s security, stability and longevity are highly prized,\u201d it added.<br \/>\nSygnum argued that institutions could choose Ethereum over Solana as the market has viewed the latter\u2019s revenue generation as \u201cless stable\u201d due to being \u201chighly concentrated in the memecoin sector.\u201d<br \/>\n\u201cThis will limit outperformance as it could be argued that the differential in valuation is accounted for by this difference in revenue sources,\u201d the company said.<br \/>\nTransactions on Solana (purple) far exceed those on Ethereum and its layer 2s, but the latter has more value locked onchain. Source: Dune AnalyticsAnother factor is Solana\u2019s tokenomics, which Sygnum said was \u201ca comparable issue\u201d to the criticism levelled at Ethereum over its mainnet\u2019s stagnant transaction volumes due to it lowering the cost for its layer 2 networks.<br \/>\nThe company said Solana is leading Ethereum in market share for layer-1 fee generation, but \u201cmost of the fees are paid to validators and do not grow the value of the Solana token.\u201d<br \/>\n\u201cIn fact, when it comes to revenues, Ethereum still exceeds Solana 2- 2.5x,\u201d Sygnum said.<br \/>\nIt argued that Solana\u2019s tokenomics are \u201ceasier to modify\u201d than Ethereum\u2019s scaling strategy. Still, it said that Solana \u201cdoes not appear inclined to drive more value to the token,\u201d as its community shot down a proposal to cut the SOL\u2019s inflation rate in March.<br \/>\nSolana could gain with stable revenue focus<br \/>\nSygnum noted that Solana, which some have hailed as an \u201cEthereum killer\u201d that could challenge the network\u2019s market share, could make some gains on the No. 2 blockchain.<br \/>\nThe company said Ethereum has the dominant market share in \u201cuse cases that are showing traction\u201d with support from governments, regulators, and traditional finance \u2014 such as tokenization, stablecoins, and decentralized finance.<br \/>\nHowever, it added that Solana had made progress in the amount of value locked on its decentralized finance protocols, and if it gains in \u201cmore stable revenue sources\u201d such as tokenization and stablecoins, it could gain on Ethereum.<br \/>\nSygnum added that Solana still has a strong backing, even with the Ethereum Foundation reshuffling its priorities to the layer 1 and recognising \u201cthe need to adjust its go-to-market strategy.\u201d<br \/>\nHowever, that could give a sentiment tailwind to Ethereum as the blockchain\u2019s \u201c2-year-long underperformance vs Solana has been temporarily arrested\u201d since the foundation\u2019s pivot.<br \/>\nMagazine: Ethereum is destroying the competition in the $16.1T TradFi tokenization race\u00a0<a href=\"https:\/\/cointelegraph.com\/news\/solana-no-convincing-signs-besting-ethereum-memecoin-bias?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsSolana does not yet have \u201cconvincing signs\u201d that it could overtake Ethereum as the blockchain of choice for institutions, as its revenue is seen as unstable due to&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/128895"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=128895"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/128895\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=128895"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=128895"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=128895"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}