One “emerging trend” could give Solana (SOL) an edge over Ethereum (ETH) in the race for smart contract supremacy, according to analysis from digital asset banking group Signum.
In a new report, the bank admits that Solana’s trading volume metrics are overstated and that it represents only a fraction of Ethereum’s market share.
Signum also points out that Solana’s trading volume is “overwhelmingly” based on the issuance and trading of meme coins.
However, the bank argues that traditional financial companies could give Solana an advantage if they prioritize Ethereum challengers when launching tokenization platforms and stablecoins.
“Recently, there are signs that even conservative institutions may value Solana’s scalability over Ethereum’s superior stability and security. PayPal added Solana for stablecoin processing a few months ago. After that, a PayPal executive recently claimed at a Solana event that “Ethereum is not the best solution for payments.”
Visa recently added Solana to its USD coin payments and published a report highlighting Solana’s “high throughput due to parallel processing, low costs due to localized fee markets, and high resiliency.” Franklin Templeton also announced plans to launch an investment trust in Solana, and Citi indicated it was considering a cross-border payment processing network. ”
ETH’s market cap is $291.6 billion at the time of writing, while SOL’s market cap is $67.1 billion.
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