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Ethereum's Dominance Persists as Standard Chartered Projects Solana's Challenges Ahead

Standard Chartered's latest analysis suggests that Solana (SOL) will likely lag behind Ethereum (ETH) over the next two to three years due to ongoing scaling issues.

The bank notes that Solana's reliance on meme coin trading, which has begun to wane, could hinder its broader adoption and application.

Currently priced around $180, Solana is projected to reach $275 by the end of 2025 and $500 by 2029, yet its dominance remains overshadowed by Ethereum, which is trading at nearly $2,700.

Kendrick, Standard Chartered's Head of Digital Assets, remarked that while Solana offers fast transaction speeds at low costs, its application still primarily revolves around the volatile meme coin market.

Ethereum's expansive ecosystem, featuring decentralized finance (DeFi) products with a total value locked exceeding $71 billion, stands in stark contrast to Solana's approximate $9 billion.

The forecast indicates that the ETH/SOL ratio will hover between 14 and 17, reflecting Ethereum's sustained superiority in terms of application revenue and institutional interest.

As trading volumes in Solana's decentralized exchanges decline, concerns over its future growth have surfaced among investors, evidenced by a negative funding rate of -0.0002%.

Despite these challenges, some institutional investors are accumulating SOL, indicating potential long-term confidence in its technical capabilities.

For Solana to thrive, it must diversify beyond meme coin dependency and foster real-world applications that can drive user engagement and transaction activity.

Ultimately, while both Ethereum and Solana have promising futures, Ethereum's established position and broader use cases currently give it the advantage in the competitive blockchain landscape.