Ethereum

One Emerging Trend Could Give Solana an Edge Over Ethereum in the Battle for Layer-1 Dominance: Sygnum Bank

Published

1 year ago

October 5, 2024

One “rising development” may probably give Solana (SOL) an edge over Ethereum (ETH) within the warfare for sensible contracts supremacy, in keeping with an evaluation from digital asset banking group Sygnum.

The financial institution acknowledges in a new report that Solana has some inflated quantity metrics and solely a small portion of Ethereum’s market share.

Sygnum additionally notes that Solana’s transaction volumes are “overwhelmingly” primarily based on memecoin issuance and buying and selling.

Nonetheless, the financial institution argues that conventional monetary corporations may give Solana an edge in the event that they prioritize the Ethereum challenger in launching tokenization platforms and stablecoins.

“There have been indications currently that even conservative establishments could also be putting extra emphasis on Solana’s scalability over Ethereum’s better stability and safety. After PayPal added Solana for stablecoin processing a number of months in the past, a PayPal govt lately claimed at a Solana occasion that “Ethereum just isn’t one of the best resolution for funds.”

Visa lately added Solana for USD coin settlement and launched a report highlighting Solana’s “excessive throughput with parallel processing, low prices with localized payment markets, and excessive resiliency.” Franklin Templeton additionally introduced their plans to launch an funding fund on Solana, and Citi prompt it will contemplate the community for cross-border fee processing.

ETH has a market cap of $291.6 billion on the time of writing, whereas SOL’s is $67.1 billion.

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