Solana Struggles to Prove It Can Replace Ethereum: Sygnum
The post Solana Struggles to Prove It Can Replace Ethereum: Sygnum appeared on BitcoinEthereumNews.com. Ethereum may be the top choice because of its stability, security, and sustainable revenue model. Solana’s overreliance on meme coin activity and validator-centric tokenomics raise concerns about long-term viability. Meanwhile, Ethereum gained fresh momentum after the Pectra upgrade triggered a 20% price surge, liquidated over $300 million in shorts, and reignited bullish sentiment. Vitalik Buterin also boosted Ethereum’s outlook by proposing a major protocol simplification to enhance scalability, efficiency, and decentralization. Investors Still Prefer Ethereum Over Solana Sygnum, a well known crypto bank group, is very skeptical about Solana’s ability to overtake Ethereum as the preferred blockchain for institutional adoption. In a blog post dated May 8, Sygnum pointed out that despite Solana’s recent surge in transaction volumes and fee generation, it lacks the critical indicators necessary to position itself as a dominant institutional platform. Solana vs Ethereum volumes (Source: Dune Analytics) The firm argued that Ethereum’s long standing strengths—like security, stability, and established track record—are still highly valued by traditional financial institutions, and that these qualities are likely to drive decision-making more than short-term market sentiment. Sygnum explained that while Ethereum’s current market sentiment is relatively poor, institutions are likely to lean towards platforms that offer dependable infrastructure for long-term products, which Ethereum continues to provide. The report raised concerns about Solana’s revenue model, and stated that its income is “highly concentrated in the meme coin sector,” which introduces a lot of volatility and undermines revenue stability. This, according to Sygnum, limits Solana’s potential to outperform Ethereum despite its current fee dominance, because the quality and sustainability of revenue matter more than quantity. Another area of critique was Solana’s tokenomics. While Solana has become the leading layer-1 blockchain in fee generation, Sygnum pointed out that most of these fees go to validators and do not actually contribute meaningfully to…
The post Solana Struggles to Prove It Can Replace Ethereum: Sygnum appeared on BitcoinEthereumNews.com.
Ethereum may be the top choice because of its stability, security, and sustainable revenue model. Solana’s overreliance on meme coin activity and validator-centric tokenomics raise concerns about long-term viability. Meanwhile, Ethereum gained fresh momentum after the Pectra upgrade triggered a 20% price surge, liquidated over $300 million in shorts, and reignited bullish sentiment. Vitalik Buterin also boosted Ethereum’s outlook by proposing a major protocol simplification to enhance scalability, efficiency, and decentralization. Investors Still Prefer Ethereum Over Solana Sygnum, a well known crypto bank group, is very skeptical about Solana’s ability to overtake Ethereum as the preferred blockchain for institutional adoption. In a blog post dated May 8, Sygnum pointed out that despite Solana’s recent surge in transaction volumes and fee generation, it lacks the critical indicators necessary to position itself as a dominant institutional platform. Solana vs Ethereum volumes (Source: Dune Analytics) The firm argued that Ethereum’s long standing strengths—like security, stability, and established track record—are still highly valued by traditional financial institutions, and that these qualities are likely to drive decision-making more than short-term market sentiment. Sygnum explained that while Ethereum’s current market sentiment is relatively poor, institutions are likely to lean towards platforms that offer dependable infrastructure for long-term products, which Ethereum continues to provide. The report raised concerns about Solana’s revenue model, and stated that its income is “highly concentrated in the meme coin sector,” which introduces a lot of volatility and undermines revenue stability. This, according to Sygnum, limits Solana’s potential to outperform Ethereum despite its current fee dominance, because the quality and sustainability of revenue matter more than quantity. Another area of critique was Solana’s tokenomics. While Solana has become the leading layer-1 blockchain in fee generation, Sygnum pointed out that most of these fees go to validators and do not actually contribute meaningfully to…
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