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21Shares: Ethereum is on the rise, but Solana will still outperform

Solana is still a smaller project with greater appreciation potential due to its developer community, the company claims

Decrypt

The price of Ethereum has nearly doubled that of Solana in the last month, but this superior performance is likely to be temporary

Although Ethereum is the most secure and decentralized smart contract platform, Solana is still a smaller project with greater appreciation potential, partly due to its developers who are constantly seeking "better execution"

The price of Ethereum jumped 43% in the last month, reaching US$ 3.600, as investors became less concerned about the apparent lack of involvement from the Ethereum Foundation and began to value the potential of layer two networks more. The non-profit foundation had committed to addressing these issues a few months ago. Still, ETH is trading 26% below its peak during the pandemic, of US$ 4.900, in 2021

Almost 60% of Myriad Markets users foresee Ethereum reaching a new all-time high this year. (Myriad Markets is a product of DASTAN, the parent company of Decrypt.

"Solana is more centralized, but it is much faster and cheaper," added Fritz. "So, for anything related to trading, obviously many institutions will tend to prefer Solana"

At the same time, Fritz acknowledged that many traditional investors still do not fully understand the value of Solana as a faster and low-cost network capable of rapid growth.

The institutional adoption of both networks is expected to grow with the approval of legislation on stablecoins. And the same narratives that drive the prices of Solana and Ethereum may influence companies' choices on which network to issue dollar-pegged tokens, Fritz stated.