Solana has not yet “convincing signs” that it can reach Ethereum as the blockchain selected for institutions, as its income is seen as unstable due to its memecoin concentration, according to Crypto Bank team Sygnum.
On a blog of May 8 PostSygnum said the current emotion around the Ethereum “remains difficult,” along with the market dedicated to “Solana’s transaction volume and the recent dominance of the fee generation.”
However, Sygnum said “the medium-term perspective is the main shape of the platform’s platform options of the traditional financial institution to bring their product offering,” not emotionally.
“We have never seen the convincing signs that Solana will be the choice because the security, stability and stretch of Ethereum are highly appreciated,” he added.
Sygnum argues that institutions can choose Ethereum in Solana As the market viewed the generation of income of the latter as “less stable” because of being “highly concentrated in the Memecoin sector.”
“This will limit the outperformance because it can be argued that the difference in appreciation is considered by the difference in revenue resources,” the company said.
Another factor is Solana TokenomicsThat Sygnum said “a comparable issue” in criticism that is being level at Ethereum with unchanged Mainnet transactions due to its decline in cost for its layer 2 networks.
The company said Solana was leading Ethereum in market sharing for the Layer-1 fee generation, but “Most fees are paid to validators and Solana’s token costs do not grow.”
“In fact, when it comes to revenues, Ethereum still exceeds Solana 2- 2.5x,” Sygnum said.
It argued that Solana’s tokenomics were “easier to change” than Ethereum’s scaling strategy. However, it said Solana “does not appear to drive more value to the token,” as its community Shot a proposal To cut off the SOL inflation rate in March.
Solana can get a steady focus of income
Sygnum noted that Solana, some of which have been named as a “Ethereum killer” that may challenge the network market sharing, may have made some acquired at the No. 2 Blockchain.
The company says Ethereum has dominant market sharing In “use cases that show traction” with support from governments, regulators, and traditional finances – such as tokenization, stablecoins, and financial decentralized.
However, it added that Solana has made a development of the amount locked in the decentralized financial protocol, and if it gets to “more stable revenue sources” such as tokenization and stablecoins, it can get to Ethereum.
Sygnum added that Solana still has a strong backbone, even at the Ethereum Foundation reshuffling its priorities In layer 1 and recognizing the “the need to adjust the go-to-market approach.”
However, a sentimental tail can provide Ethereum because the “2-year-long underperformance of the blockchain is temporarily arrested” from the foundation pivot.
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