There are no convincing signs that Solana will surpass Ethereum as the preferred blockchain for institutions. This opinion was presented by experts from the Swiss crypto bank Sygnum.
According to the report, current sentiments around Ethereum 'remain poor'. The market is primarily focused on 'high transaction volumes of Solana and its recent dominance in generating fees'.
'Setting aside sentiments, we believe that medium-term prospects will primarily be determined by the choice of platforms on which traditional financial institutions offer their products,' said Sygnum.
Experts estimate that 'security, stability, and durability', as well as higher income, speak in favor of Ethereum. In fact, the network outperforms Solana by almost 2.5 times on this indicator. The exception was a short period associated with the issuance of tokens TRUMP and MELANIA by Donald Trump's family.
'The market has always considered Solana's revenues to be less stable, as they are largely concentrated in the meme coin sector. And this will limit the superiority,' emphasized Sygnum specialists.
Ethereum is criticized for stagnating on-chain activity on the base blockchain — the Dencun hard fork sharply reduced costs for L2 networks, where transaction volumes have shifted. This led the market to consider ETH less valuable, experts say.
However, Solana faces a 'comparable problem' in the form of tokenomics, they added. The blockchain outpaces its competitor in generating fees on the first level, but most of the revenues go to validators and do not increase the value of SOL.
'At the moment, Solana does not seem inclined to increase the value of its token, as the proposal to adjust the inflation rate, which would have had the corresponding effect, was recently definitively rejected,' the experts noted.
They pointed out that Ethereum dominates in use cases popular with governments, regulators, and financial institutions: tokenization, stablecoins, and DeFi.
The blockchain's share in the RWA segment reached 57%, while the L2 protocol ZKsync accounts for another 20%. Solana's figure does not exceed 3%.
'Although Ethereum's share in the stablecoin market has decreased since the beginning of the year, it still exceeds 50%, while Solana, although it has doubled its market share, still remains just above 5%,' the experts noted.
They found Solana's progress in decentralized finance to be the most convincing. In terms of TVL, the blockchain has increased its share in the segment from 9.5% to 11.5% since the beginning of the year. For Ethereum, the figure dropped from 63.5% to 55%.
'So far, all 'Ethereum killers' have failed to encroach on the network's dominance, and despite the fact that some of these projects have brought brilliant innovations to solve real problems such as scalability or interoperability, most of them have faded by now,' concluded Sygnum specialists.
