Solana lacks ‘convincing signs’ of besting Ethereum: Sygnum

Sygnum, a crypto bank group, assesses Solana's potential to surpass Ethereum, concluding that convincing evidence is lacking. Solana's revenue, heavily dependent on memecoins, is deemed unstable, hindering its appeal to institutions. While Solana boasts higher transaction volumes, Ethereum maintains significantly more value locked in its network. Sygnum emphasizes that institutional adoption hinges on platform choices, not market sentiment. Ethereum's security, stability, and longevity are highly valued by institutions, giving it an edge over Solana. Solana's tokenomics present a comparable challenge to Ethereum's scaling issues, limiting token value growth. Despite leading in layer-1 fee generation, most fees don't increase Solana's token value; Ethereum's revenue still surpasses Solana's. Solana's community rejected a proposal to reduce inflation, further hindering its potential. However, Solana could gain ground by diversifying into more stable revenue streams like tokenization and stablecoins. Sygnum acknowledges Solana's strong backing but highlights Ethereum's advantage in areas like tokenization, favored by traditional finance.