As the strong competition between Ethereum (ETH) and Solana (SOL) continues, Sygnum Bank has published a new report comparing ETH and SOL.
In his previous reports, he stated that institutions prefer Solana over Ethereum and that SOL could displace ETH. However, the bank seems to have given up on this idea, as Sygnum Bank stated that it does not expect Solana to overtake Ethereum in the medium term.
The giant bank said it has “no convincing signs” that Solana can overtake Ethereum as the blockchain of choice for institutions, as revenue from memecoins remains volatile. “We are not yet seeing compelling signs that Solana will be the preferred choice, as the security, stability and longevity of Ethereum are highly valued.”
Sygnum has completely retracted its previous view, claiming that institutions may choose Ethereum over Solana because the market sees Solana’s revenue generation as “less stable” as it is “concentrated in the memecoin sector.”
Solana leads Ethereum in market share for layer-1 fee generation, the bank said, but most of the fees are paid to validators and do not increase the value of the Solana token. “In fact, Ethereum still outperforms Solana by 2-2.5x when it comes to revenues,” it added.
Ethereum rose 18% in the last 24 hours to $2,250.
*This is not investment advice.