Could Solana Overtake Ethereum as Traditional Finance Favors Scalability?

A recent report from digital asset bank Sygnum suggests that a rising trend could give Solana (SOL) an advantage over Ethereum (ETH) in the competitive smart contract space.

Although Solana’s transaction volumes are inflated by memecoin activity and its market share remains much smaller compared to Ethereum’s, Sygnum points out that Solana’s scalability could become a significant draw for traditional finance companies.

The report highlights how some conservative financial institutions might be leaning towards Solana over Ethereum due to its capacity for handling large-scale tokenization platforms and stablecoin projects.

Notable developments include PayPal’s addition of Solana for stablecoin transactions, with a PayPal executive recently stating that Ethereum may not be ideal for payments.

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Visa also embraced Solana for settling USD Coin, praising the network’s speed, cost-efficiency, and resilience.

Additionally, Franklin Templeton plans to launch a mutual fund on Solana, and Citi is reportedly considering using the network for cross-border payments.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.