Solana lacks ‘convincing signs’ of besting Ethereum: Sygnum

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 does not yet have “convincing signs” that it could overtake Ethereum as the blockchain of choice for institutions, as its revenue is seen as unstable due to its memecoin concentration, 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.

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