Crypto banking group Sygnum says it doesn’t expect Solana to beat Ethereum in the medium term, partly due to the blockchain’s revenues being too tied to memecoins.
Solana has yet to show convincing signs that it could surpass Ethereum as the preferred blockchain for institutions, as its revenue, heavily reliant on memecoins, is considered unstable, according to crypto bank group Sygnum.
In a May 8 blog post, Sygnum said that the current sentiment around Ethereum “remains poor,” with the market focused on Solana’s “transaction volumes and its recent dominance in fee generation.”
However, Sygnum said “the medium-term outlook will primarily be shaped by traditional financial institutions’ platform choices to bring their product offerings,” not by sentiment.