- Standard Chartered predicts that while Solana (SOL) has strong long-term potential, Ethereum (ETH) is likely to outperform in the short to medium term due to growing institutional interest.
- Despite Solana’s higher real economic activity, concerns over its reliance on memecoin trading may temporarily stall its price momentum.
Standard Chartered Sees Bright Future for SOL—But Bets on ETH for Short-Term Gains
Solana’s impressive rally may be losing steam—at least in the eyes of institutional investors. Despite a bullish long-term outlook from Standard Chartered, the global banking giant believes Ethereum (ETH) will outshine Solana (SOL) in the short to medium term.
Geoff Kendrick, Head of Digital Assets Research at Standard Chartered, recently shared his insights on the Lightspeed podcast. In the bank’s first dedicated report on Solana, Kendrick laid out a two-pronged forecast: SOL could reach $275 by the end of 2025 and potentially hit $500 by 2029. However, he also noted that Ethereum is better positioned to outperform in the near future.
Ethereum’s Institutional Advantage
Kendrick attributes Ethereum’s edge to a shift in institutional sentiment and believes the market has already priced in the negative sentiment stemming from scaling debates around Layer 2s. “There was a lot of debate in 2024 about whether L2s add or subtract value,” Kendrick explained. “Much of that story has already played out in relative terms.”
While Ethereum’s L2 networks reduce base-layer fee revenue, Kendrick believes ETH is beginning to reassert itself as a key institutional asset—especially as staking, options markets, and potential ETF integrations take center stage.
Solana: Real Value, But Discounted
Although Solana leads Ethereum in real economic value—measured by tips and transaction fees—many still perceive it as overly reliant on memecoin activity.That perception could weigh on its price performance, at least in the near term.
Solana’s comeback from post-FTX lows was fueled by meme-driven activity, but with that wave cooling off, the market may begin to reassess Solana’s fundamentals. “Solana may underperform Ethereum in the near term,” Kendrick cautioned.
Still, with platforms like pump.fun generating $50 million in monthly revenue, the memecoin narrative may not be as fleeting as some believe.
Long-Term Bullish, Short-Term Caution
Solana’s future remains bright, with strong developer activity and clear user demand. But for now, institutions may be casting their bets on Ethereum as the more stable and mature investment—at least until SOL next wave of growth kicks in.
