Despite the buzz around Solana, especially with its skyrocketing transaction volumes and meme-coin-fueled activity, crypto banking powerhouse Sygnum isn’t convinced it's ready to dethrone Ethereum just yet.
In a recent blog post, Sygnum pointed out that Solana still lacks “convincing signs” of being the go-to blockchain for serious institutional use. Why? Because its revenue streams are too dependent on hype-driven memecoins, which aren’t exactly stable or scalable in the long term.
Meanwhile, Ethereum—though currently weighed down by negative sentiment—is still seen as the more secure, stable, and time-tested option. Institutions value those traits when choosing platforms to build on, and Ethereum’s proven track record gives it the edge.
Sygnum also noted that even though Solana leads Ethereum in some areas like Layer-1 fee generation, those fees mostly benefit validators and don't necessarily translate into value for the SOL token. Ethereum, on the other hand, still pulls in 2 to 2.5 times more in revenue overall.
Interestingly, while Solana's tokenomics are more flexible and easier to tweak, the community recently voted against reducing inflation rates—suggesting they're not in a rush to boost the token's long-term value.
Still, it’s not all bad for Solana.
Sygnum acknowledged that Solana is gaining traction in decentralized finance (DeFi) and if it can pivot towards more stable revenue streams like tokenization and stablecoins, it might start closing the gap with Ethereum. But for now, Ethereum holds the crown in areas where institutional interest is strongest—like DeFi, stablecoins, and government-supported use cases.
The Bottom Line?
Solana’s got potential and momentum, but Ethereum’s deep roots and institutional trust still make it the top pick for the big players—for now.