Solana News Today: Solana Could Surge 89% as Institutions Favor Its Speed

Adrian Fritz, head of research at 21Shares, has expressed his belief that Solana could outperform Ethereum in the next bull phase. He argues that Solana’s smaller market cap and rapid development provide it with a higher growth potential compared to Ethereum, which he believes has become complacent in its leading position.

Fritz acknowledges Ethereum's dominance as a decentralized smart contract platform but highlights Solana's commercial focus, speed, and low transaction costs as key advantages. These factors, he suggests, give Solana a competitive edge, particularly for applications that require high throughput. According to Fritz's forecast, Solana could reach $337, representing an 89% increase from its current value, as it solidifies its position among the leading altcoins.

Fritz also notes the institutional adoption on both platforms. Robinhood is developing a Layer-2 solution on Ethereum, reinforcing its role as the settlement layer for traditional finance. Concurrently, Kraken is introducing tokenized stocks on Solana, further validating the network's utility for financial products.

Despite acknowledging Solana’s more centralized structure, Fritz argues that this appeals to institutions prioritizing performance. He dismisses the misconception that Solana is primarily associated with memecoins, citing the example of a Trump-themed meme coin launched earlier this year. This coin, he notes, demonstrated Solana’s capability to handle global trading volumes, underscoring its potential beyond memecoins.