Solana\u2019s current funding rate sits at -0.0002%, signalling short pressure.
\nSolana DEX volumes fell behind Ethereum earlier this year.
\nAccumulation of SOL suggests long-term investor confidence remains.<\/p>\n
Standard Chartered has cautioned that Solana (SOL) could underperform Ethereum (ETH) due to fading meme coin activity, a key driver of Solana\u2019s on-chain volume in recent quarters.<\/p>\n
While Solana has proven its technical capabilities, particularly during the recent meme coin trading boom\u2014the bank now sees a risk of underutilisation as seasonal trends shift.<\/p>\n
According to the bank\u2019s Head of Digital Assets Research, Geoff Kendrick, Ethereum\u2019s broader adoption and institutional partnerships place it in a stronger position for sustained growth.<\/p>\n
Solana has often been positioned as a faster and cheaper alternative to Ethereum, with the ability to handle high transaction volumes at low cost.<\/p>\n
However, Standard Chartered points out that much of this activity has been driven by short-term trading of meme coins, a sector known for its volatility and limited utility.<\/p>\n
With meme coin enthusiasm cooling off in 2025, Kendrick projects a possible usage gap for Solana before other applications, such as decentralised finance platforms, gaming projects, or social media integrations, gain critical mass.<\/p>\n
The bank says Ethereum\u2019s advantage lies in its diversified user base, which includes enterprise-level applications, financial products, and long-term smart contract development.<\/p>\n
Blockchain analytics also supports this view. Earlier this year, Ethereum overtook Solana in decentralised exchange (DEX) trading volumes after a slump in trading on Raydium (RAY) and Pump.fun, two of Solana\u2019s most active meme coin platforms.<\/p>\n
That shift underlined Ethereum\u2019s dominance across multiple sub-sectors of the blockchain space.<\/p>\n
Investors appear to be reacting to these signals. In February, traders began trimming exposure to Solana-based assets due to uncertainty over the future of meme coin projects and delays in scaling up major Solana-native protocols.<\/p>\n
Standard Chartered says these concerns are now being priced into market forecasts, particularly in terms of revenue from transaction fees and new user onboarding.<\/p>\n
One key indicator is Solana\u2019s funding rate. According to blockchain data firm Glassnode, Solana currently has a negative funding rate of -0.0002%, the only such figure among the top 10 cryptocurrencies by market capitalisation, excluding stablecoins.<\/p>\n
A negative funding rate means short sellers are paying fees to hold bearish positions, which typically indicates mounting downward pressure on price.<\/p>\n
However, a negative funding rate can sometimes be a contrarian indicator. Traders may be expecting a short squeeze, where sudden upward price moves force shorts to buy back their positions, potentially creating a sharp rally.<\/p>\n
BeInCrypto reports that the accumulation of SOL by institutional players in May suggests that long-term investors may still see value in Solana, even if near-term performance lags Ethereum.<\/p>\n
While Solana has demonstrated rapid growth and robust technical infrastructure, analysts from IntoTheBlock believe the network still has significant ground to cover before challenging Ethereum\u2019s dominance.<\/p>\n
The research group said that although Solana may continue to grow and target niche applications, surpassing Ethereum remains a long-term goal rather than an imminent milestone.<\/p>\n
Ethereum\u2019s integration with traditional finance, widespread developer support, and upgrades like the shift to proof-of-stake have helped entrench its position as the go-to blockchain for decentralised applications.<\/p>\n
Until Solana\u2019s next wave of real-world use cases gains momentum, Standard Chartered believes the network\u2019s price and on-chain activity may continue to trail Ethereum.<\/p>\n
As the market matures, both blockchains may find space for growth\u2014but in the short term, Ethereum\u2019s ecosystem breadth and investor confidence give it the edge, according to the bank\u2019s latest analysis.<\/p>\n
The post Solana could lag Ethereum as meme coin activity dips, warns Standard Chartered<\/a> appeared first on CoinJournal<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" Solana\u2019s current funding rate sits at -0.0002%, signalling short pressure. Solana DEX volumes fell behind Ethereum earlier this year. Accumulation of SOL suggests long-term investor confidence remains. Standard Chartered has cautioned that Solana (SOL) could underperform Ethereum (ETH) due to fading meme coin activity, a key driver of Solana\u2019s on-chain volume in recent quarters. While […]<\/p>\n","protected":false},"author":0,"featured_media":3559,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[100],"tags":[],"class_list":{"0":"post-3558","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-ethereum"},"acf":[],"_links":{"self":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts\/3558","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/comments?post=3558"}],"version-history":[{"count":0,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts\/3558\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/media\/3559"}],"wp:attachment":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/media?parent=3558"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/categories?post=3558"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/tags?post=3558"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}