Who will win the crypto race of the future — ETH or SOL?

Solana has gained attention due to its impressive performance. Its low fees and high transaction speed make the network attractive to developers and users.

In November 2024, Solana achieved records: decentralized applications generated $365 million in revenue, and the cryptocurrency's turnover reached $243 billion.

However, Fidelity experts warn: Solana's rapid growth is partially driven by speculative assets like meme coins. This "cyclical trend," they believe, may weaken during the next bear market.

Stability and prospects

ETH remains the leader due to its high level of decentralization, developer activity, and institutional investor support.

Unlike Solana, the success of this asset is less dependent on speculative assets. This makes the network more stable in the long term.

Analysts note that the upcoming Ethereum hard fork called Pectra will improve the platform's scalability, functionality, and security. While the upgrade is not causing much buzz, its impact on the ecosystem will be deeper than the Firedancer update in Solana, which is primarily focused on increasing transaction speed.

The role of traditional finance and ETFs

Ethereum is already leading due to its support from traditional finance (TradFi) and accessibility through ETFs. The introduction of staking into these funds could further strengthen its position. However, the registration of an ETF based on Solana may level the competitive playing field, according to Fidelity analysts.

Fidelity notes that Solana's success in the short term is tied to market narratives, while Ethereum relies on stable fundamental indicators. The outcome of the competition in 2025 will depend on the implementation of updates and regulatory changes.