• Solana’s present funding charge is at -0.0002%, indicating quick strain.
• The Solana Dex quantity was delayed by Ethereum earlier this 12 months.
• The buildup of SOL means that long-term investor belief stays.

Normal Chartered warns that Solana (Sol) can fall under Ethereum (ETH) attributable to fade meme coin exercise, a key driver of Solana’s on-chain quantity in latest quarters.

Solana has confirmed its technical capabilities, notably with the latest Meme Coin Buying and selling Growth, however banks imagine there’s a danger of irregularity as seasonal developments change.

Jeff Kendrick, Ethereum’s broader adoption and institutional partnership, places it in a stronger place for sustainable progress, in keeping with the financial institution’s head of digital asset analysis.

Ethereum comes from a wider vary of use circumstances

Solana is usually positioned as a sooner, cheaper different to Ethereum, with the power to deal with excessive transaction volumes at a low price.

Nonetheless, Normal Chartered notes that a lot of this exercise is pushed by short-term buying and selling in Memecoin, a sector identified for its volatility and restricted utility.

With Memecoin’s enthusiasm cooled in 2025, Kendrick predicts the opportunity of Solana’s use earlier than different purposes, equivalent to decentralized finance platforms, gaming tasks and social media integration.

Banks say the advantages of Ethereum lie in its various person base. This consists of enterprise-level purposes, monetary merchandise and long-term sensible contract growth.

Blockchain evaluation additionally helps this view. Earlier this 12 months, Ethereum overtook Solana in decentralized trade (DEX) buying and selling quantity after a droop in buying and selling at Raydium (Ray) and Pump, two of Solana’s most lively memecoin platforms.

This shift highlighted Ethereum’s domination throughout a number of subsectors of the blockchain house.

Market sentiment displays the dangers of Solana within the quick time period

Traders appear to be responding to those indicators. In February, merchants started trimming publicity to Solana-based belongings attributable to uncertainty about the way forward for the Memecoin undertaking and delays in increasing main Solana native protocols.

In line with Normal Chartered, these considerations at the moment are setting market forecast costs, notably when it comes to transaction charges and income from onboarding new customers.

One key metric is Solana’s funding charge. In line with blockchain information firm GlassNode, Solana’s unfavorable funding charge is -0.0002%. That is the one quantity among the many high 10 cryptocurrencies by market capitalization besides Stablecoins.

A unfavorable funding charge implies that quick sellers are paying charges to carry bearish positions.

Nonetheless, unfavorable funding charges may be the alternative indicator. Merchants could anticipate a shorter aperture. There, a sudden rise worth may pressure shorts to repurchase positions and create sharp rally.

Beincrypto reviews that the buildup of SOL by institutional gamers in Could means that long-term buyers should still see worth in Solana, even when short-term efficiency slows Etherum.

Analysts say Ethereum stays the dominant layer-1

Whereas Solana has demonstrated speedy progress and strong technological infrastructure, IntotheBlock analysts imagine the community nonetheless has vital grounds to cowl earlier than difficult Ethereum domination.

The analysis group stated Solana could proceed to develop and goal area of interest purposes, however surpassing Ethereum stays a long-term purpose quite than an imminent milestone.

Integration with conventional finance, intensive developer assist, and upgrades like Shift of-stake has helped set up its place as a blockchain for decentralized purposes.

Till Solana’s subsequent wave of real-world use circumstances acquire momentum, Normal Chartered believes community costs and on-chain exercise may proceed to chase Ethereum.

In line with the most recent evaluation of the financial institution, each blockchains could discover house for progress because the market matures, however within the quick time period, the breadth of Ethereum ecosystem and investor belief give it a bonus.