Solana yet has “convincing signs” that it can outperform Ethereum as the favorite Blockchain Blockchain, as its revenues are unstable because of its concentration in Memecoin, according to the Crypto Bank SYGNUM group.
In the May 8 blog mailSYGNUM said that the current feelings about Ethereum “are still bad”, as the market focused on “the sizes of transactions in Solana and their last dominance in generating drawings.”
However, SYGNUM said, “The medium -term view will be primarily options for traditional financial institutions to present their products offers,” not according to feelings.
He added: “We do not see yet convincing signs that Solana will be the preferred choice because Ethereum security and stability and longevity are very appreciated.”
SYGNUM argued that institutions could choose Ethereum on Solana, where the market looked at the latter’s revenue as “less stable” given its “very focused in the Memecoin”.
“This will determine the superior performance because it can be said that the differentiation of the evaluation is calculated through this difference in revenue sources,” the company said.
Another factor is the distinctive symbol for Solana, which SYGNUM said is a “similar issue” of the criticism in Ethereum on the sizes of stagnant Mainnet transactions due to the reduction in the cost of the second layer networks.
The company said that Solana is leading ETHEREUM in its market share to generate layer 1 fees, but “most fees are paid to the fighters and the value of the Solana code is not growing.”
“In fact, when it comes to revenue, Ethereum still exceeds Solana 2- 2.5X,” said Sygnum.
He has argued that the Solana symbol is “easier to modify” than the strategy of the Ethereum scaling strategy. However, Solana “does not tend to pay more value to the distinctive symbol,” where his community recorded a proposal to reduce the inflation rate in SOL in March.
She can earn Solana with the concentration of stable revenues
Sygnum noted that Solana, who was praised by some “ETHEREUM” who could challenge the market share of the network, can make some gains on Blockchain No. 2.
The company said that ETHEREUM has a dominant market share in “Use cases that show traction” with the support of governments, organizers and traditional financing – such as the distinctive symbol, stablecoins, and decentralized financing.
However, he added that Solana has made progress in the quantity of the closed value on decentralized financing protocols, and if she acquires “more stable revenue sources” such as the distinctive symbol and stablecoins, it can gain ethereum.
SYGNUM added that Solana still has strong support, even with ethereum Foundation to its priorities for class 1 and recognizing “the need to control the going to the market.”
However, this may give Tailwind to Ethereum, where “weak performance for two years is temporarily versus Solana” has been given since the Foundation’s axis.
magazine: Ethereum destroys the competition in the Tradfi 16.1T symbol
Related Articles
