One “emerging trend” could potentially give Solana (SOL) an edge over Ethereum (ETH) in the war for smart contract supremacy, according to an analysis from the digital asset banking group Sygnum.
The bank acknowledges in a new report that Solana has some overstated volume metrics and only a small portion of Ethereum’s market share.
Sygnum also notes that Solana’s transaction volumes are “overwhelmingly” based on memecoin issuance and trading.
The bank argues, however, that traditional finance firms could give Solana the edge if they prioritize the Ethereum challenger as they launch tokenization platforms and stablecoins.
“There have been indications recently that even conservative institutions may place greater emphasis on Solana’s scalability than on Ethereum’s greater stability and security. After PayPal added Solana a few months ago for stablecoin processing, a PayPal executive recently claimed at a Solana event that ‘Ethereum is not the best solution for payments.’
Visa recently added Solana for USD Coin settlement and released a report highlighting Solana’s ‘high throughput with parallel processing, low cost with localized fee markets and high resiliency.’ Franklin Templeton also announced their plans to launch a mutual fund on Solana, and Citi suggested it was considering the network for cross-border payments processing.”
ETH has a market cap of $291.6 billion at time of writing, while SOL’s stands at $67.1 billion.
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https://dailyhodl.com/2024/10/05/one-emerging-trend-could-give-solana-an-edge-over-ethereum-in-the-battle-for-layer-1-dominance-sygnum-bank/
2024-10-05 20:00:35
