Latest assessment by Sygnum Bank Ethereum for Solana’s smart contract superiority 
$2,423He suggests that he can gain an advantage over . The report also says that some of Solana’s transaction volume metrics are exaggerated and account for only a small fraction of Ethereum’s market share.
Solana and Ethereum
Sygnum observes that Solana’s transaction volumes are largely based on memecoin minting and trading. This may mean that Solana’s general uses are limited.
The bank suggests that Solana could have an advantage over Ethereum when traditional financial firms launch tokenization platforms and stablecoins. This strategy can increase adoption of Solana. Solana network is much faster and almost zero cost compared to its competitors. This shows that the future of Solana may be bright, considering the importance of cost in tokenization.
Solana and Corporate Interest
PayPal added Solana for stablecoin transactions a few months ago, and “Ethereum is not the best solution for payments,” a PayPal executive said at a Solana event. Visa also added Solana for USD Coin, emphasizing Solana’s high transaction capacity, low costs and high durability.
Franklin Templeton announced that they plan to launch an investment fund on Solana. Additionally, Citi is known to be evaluating the Solana network for cross-border payment transactions. These developments point to greater acceptance of Solana among financial institutions.
While Ethereum’s market cap is $291.6 billion, Solana’s market cap is $67.1 billion. This difference shows that Solana has more room for growth. Solana’s scalability may play a key role in its preference by traditional financial institutions. Thus, we can see an environment where Solana’s competitiveness against Ethereum increases in the future.
SOL offers lower transaction fees and faster transaction confirmation times compared to ETH, making it an attractive option for application developers and users. Visa executives highlighted Solana’s transaction capacity and cost efficiency and stated that this network is suitable for financial transactions.
As a result, although SOL has a lower market cap than ETH, it can gain a significant competitive advantage thanks to its scalability and cost advantages. Increasing interest in Solana from traditional financial institutions may support the future growth potential of the network.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
