Digital asset banking group Sygnum has shifted its perspective in the ongoing rivalry between Ethereum (ETH) and Solana (SOL) for institutional blockchain dominance. In a new report, Sygnum clearly states that Ethereum maintains an insurmountable lead as the preferred network for large financial players due to its security, network stability, and proven track record.
According to Sygnum, institutions prioritize long-term reliability, regulatory compliance, and network maturity—traits where Ethereum excels. Ethereum's success is reinforced by a mature ecosystem, a strong developer community, and a robust economic model that links network fees to actual token value through mechanisms like ETH burning and staking rewards.
In contrast, while Solana is known for its impressive speed and low transaction fees, Sygnum highlights several shortcomings for institutional adoption. Solana's revenue generation relies heavily on the memecoin sector, making it volatile and less predictable for institutions seeking stable returns. Additionally, most of Solana's network fees are distributed to validators rather than SOL token holders—unlike Ethereum, where users benefit more directly from network activity.
The report asserts that key institutional adoption drivers extend beyond performance metrics, emphasizing regulatory clarity, ecosystem maturity, governance, and liquidity—areas where Ethereum remains notably stronger. While Solana has made significant progress on these fronts, its history of network outages, revenue instability, and association with speculative retail activity remain major concerns for institutions.
Sygnum's analysis concludes that Ethereum outpaces Solana by two to two and a half times in terms of network revenue with more sustainable and diverse income sources. The bank adds that for Solana to challenge Ethereum's institutional lead, it will need to demonstrate enduring network stability, attract enterprise usage beyond memecoins, and align its revenue structure more closely with SOL token value accrual.
This represents a marked change from Sygnum's earlier optimism regarding Solana, underlining the enduring importance of security, stability, and proven longevity in winning over the next wave of institutional crypto adopters.