An “emerging trend” could potentially give Solana (SOL) an advantage over Ethereum (ETH) in the war for smart contract supremacy, according to an analysis by digital asset banking group Sygnum.
The bank acknowledges in a new report that Solana has overestimated volume metrics and only a small portion of Ethereum’s market share.
Sygnum also notes that Solana’s trading volumes are “largely” based on the issuance and trading of memecoins.
The bank says, however, that traditional financial firms could give Solana the edge if they prioritize challenger Ethereum when launching tokenization platforms and stablecoins.
“There have been indications recently that even conservative institutions may value the scalability of Solana more than the increased stability and security of Ethereum. 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 the “high throughput with parallel processing, low cost with localized fee markets, and high resilience.” Franklin Templeton also announced plans to launch a mutual fund on Solana, and Citi suggested it was considering the network for cross-border payment processing.
At the time of writing, ETH has a market cap of $291.6 billion, while SOL’s is $67.1 billion.
Don’t miss a thing – Subscribe to receive email alerts straight to your inbox
Check Price Action
Follow us on XFacebook and Telegram
Surf the daily Hodl mix
 
Disclaimer: Opinions expressed on The Daily Hodl do not constitute investment advice. Investors should conduct due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and transactions are at your own risk and any losses you may incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Image generated: halfway
