Ethereum prices rose almost twice as fast as Solana last month, but this advantage may not be permanent.
Solana has great long-term returns, according to Adrian Fritz, research director at Switzerland-based asset management company 21Shares.
Fritz acknowledged that Ethereum is the safest and most decentralized smart contract platform, but he said Solana is a smaller project and has room for more growth. He said the Solana developer community is constantly striving for better performance. “Ethereum sat on the throne and looked down at the other Layer 2 projects, which made them a little lazy. Meanwhile, Solana is much more commercially focused,” Fritz said.
Fritz believes ETH, ranked second in market capitalization, could reach an all-time high this year, but it doesn’t quite hit analysts’ $10,000 forecast. In contrast, he predicts Solana will surge 89% from the current $178. Fritz pointed out that Solana is approaching “Blue Chip Altcoin” status.
Robinhood’s plan to develop an Ethereum-based Layer 2 scaling solution is a critical development, indicating that traditional finance can accept Ethereum as a global consensus layer. Meanwhile, the development of Kraken, a tokenized stock product called “Xstocks” in Solana, is also an important step for Solana.
Fritz admitted that Solana has a more centralized structure compared to Ethereum, but he said he has a much better advantage in terms of speed and transaction costs. “In transaction-oriented applications, many institutions tend to prefer Solana.”
However, Fritz said many traditional investors still don’t fully understand Solana, saying, “I still have a lot of people saying, ‘Is it for Memo Coin?”
*This is not investment advice.
