Ethereum or Solana? Fidelity’s 2025 outlook reveals surprising insights

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  • Solana’s Firedancer upgrade is set to attract investor attention in 2025.
  • Meanwhile, Ethereum’s stable fundamentals and ETP accessibility highlight its long-term investment potential.

In the rapidly changing world of digital assets, the competition between Ethereum (ETH) – the biggest alternative coin – and Solana (SOL) continues to be a key area of focus.

Spotlighting the persisting competition, Fidelity Digital Assets, a sector of Fidelity Investments, has recently shared a report entitled “A Glimpse into 2025: Could it still be feasible to join the digital assets realm?

Ethereum vs. Solana

In his paper, titled “Ethereum Outlook,” Max Wadington provides an in-depth analysis of Ethereum’s future direction, examining essential indicators, projected updates, and their possible effects on investors, given the trajectory of the cryptocurrency market towards 2025.

This examination reveals the factors influencing the struggle for dominance between these top-tier blockchain platforms.

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Remarking on the same, Wadington noted, 

For long-term investors, we believe the basics hold significant weight. In this context, it’s worth noting that Ethereum exhibits robust developer activity, a substantial amount of Total Value Locked (TVL), and a steady supply of stablecoins.

He added, 

When it comes to growth, Solana’s earnings and Total Value Locked (TVL) are increasing more quickly than Ethereum’s, and it has gained substantial attention from the crypto community over the past year.

As an analyst, I’ve observed that Solana’s income stream is notably impacted by the fluctuations in memecoin trading. This model exhibits a recurring trend, where it experiences growth and prosperity during market upturns, or bull markets. However, when we encounter bear markets, its performance takes a substantial dip.

Indeed, I find it apt to draw comparisons with Ethereum, where Uniswap emerges as a pivotal instance of application fueled predominantly by speculation. From my perspective as an analyst, this is a significant point to consider in the broader context of the decentralized finance (DeFi) landscape.

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On the other hand, Ethereum’s core seems less dependent on conjecture, which might lead to more enduring stability in the long run.

Although these fundamental elements offer valuable information for those investing over a longer period, they may not always predict which network will excel in the immediate future.

Why? Because price trends in the near term often hinge on prevailing market narratives.

Ethereum vs. Solana upgrades

As I peer towards 2025, I anticipate that Solana’s Firedancer upgrade will stir great enthusiasm within its community, as it promises a substantial increase in the number of transactions it can handle each second (TPS).

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This could strengthen SOL’s value proposition and attract more attention from investors.

Conversely, the Ethereum’s Prague/Electra update is essential for improving its distinct security aspects, but it may not cause the same level of excitement because it does not immediately influence the value proposition of Ether.

Despite potential competition, Ethereum stays ahead due to its availability through Exchange-Traded Products (ETPs). This characteristic might continue to be important, particularly as regulatory decisions unfold.

Solana steals the limelight

In contrast, although there have been drops in the prices of many altcoins lately, Solana has managed to stand out among its peers in several crucial aspects. This has further strengthened its position as a leading contender in the volatile crypto market.

Between January 6th and 7th, trading volumes on Solana’s Decentralized Exchange (DEX) exceeded those of both Ethereum and Base exchanges together.

It reached an impressive $3.98 billion compared to ETH’s $1.7 billion and Base’s $1.2 billion.

This significant surge put SOL ahead by more than a billion dollars in trading volume, emphasizing the active network usage and its popularity among speculative markets such as meme-based cryptocurrencies and artificial intelligence-related assets.

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2025-01-09 20:11