Solana could be behind Ethereum as the activity of the meme coins falls

Solana’s current financing rate is at -0,0002%, indicating a short pressure.

Solana dex volumes fell behind Ethereum earlier this year.

Sun accumulation suggests that long -term investors confidence is maintained.

Standard Chartered has warned that Solana (Sun) could have a lower performance than Ethereum (eth) due to the fading of the meme coins activity, a key driver of the solar on-chain volume in the last quarters.

Although Solana has demonstrated its technical capabilities, particularly during the recent boom of Meme currencies, the bank now sees a risk of underutilization as seasonal trends change.

According to the Bank Digital Asset Research Chief, Geoffrey Kendrick, the broader adoption of Ethereum and institutional associations place it in a stronger position for sustained growth.

Ethereum benefits from wider use cases

Solana has often positioned itself as a faster and faster alternative to Ethereum, with the ability to handle large volumes of low cost transactions.

However, Standard Chartered points out that much of this activity has been driven by short -term trade of MEME currencies, a sector known for its limited volatility and utility.

With the enthusiasm for the MEME coins cooling into 2025, Kendrick projects a possible use gap for Solana before other applications, such as decentralized financial platforms, games projects or social media integrations, gain critical mass.

The bank says that Ethereum’s advantage lies in its diversified user base, which includes business level applications, financial products and long -term intelligent contract development.

Blockchain analytics also supports this point of view. Earlier this year, Ethereum surpassed Solana in the negotiation volumes of the Decentralized Exchange (DEX) after a fall in operations in Raydium (Ray) and Pump.fun, two of the most active meme coins platforms of Solana.

This change underlined Ethereum’s domain in multiple subsectors of Blockchain space.

Market feeling reflects the risks of Solana in the short term

Investors seem to be reacting to these signals. In February, traders began to cut exposure to solana -based assets due to uncertainty about the future of meme coins projects and delays in the expansion of the main native solar protocols.

Standard Chartered says that these concerns are now being discounted in market forecasts, particularly in terms of transaction rates for transaction and incorporation of new users.

A key indicator is Solana’s financing rate. According to the Blockchain Glassnode data company, Solana currently has a negative financing rate of -0,0002%, the only figure of this type among the 10 main cryptocurrencies for market capitalization, excluding the stablecoins.

A negative financing rate means that short sellers are paying commissions to maintain bearish positions, which usually indicates a growing downward pressure on the price.

However, a negative financing rate can sometimes be an opposite indicator. Traders can be waiting for a Squeeze Short, where sudden movements rise in prices force shorts to repurchase their positions, which could create a strong rebound.

Beinypto reports that the accumulation of sun by institutional actors in May suggests that long -term investors can continue to see value in Solana, even if short -term performance is going to the Ethereum.

Analysts say Ethereum remains the dominant layer 1

While Solana has demonstrated rapid growth and solid technical infrastructure, Intotheblock analysts believe that the network still has a lot of land to go before challenging Ethereum’s dominance.

The research group said that, although Solana can continue to grow and point to niche applications, overcome Ethereum remains a long -term objective instead of an imminent milestone.

The integration of Ethereum with traditional finances, the broad support of developers and updates such as the change to the participation test have helped strengthen their position such as the reference block chain for decentralized applications.

Until the next wave of use cases of the real world of Solana gains impulse, Standard Chartered believes that the price of the network and the chain activity can follow Ethereum’s behind.

As the mature market, both block chains can find space for growth, but in the short term, the amplitude of the Ethereum ecosystem and the trust of investors give it the advantage, according to the latest bank analysis.