Solana's Price Drops 23.2% Year-to-Date Despite Institutional Backing

Anthony Scaramucci, the founder of SkyBridge Capital, has reignited the debate surrounding the potential of Solana to surpass Ethereum. Scaramucci expressed strong confidence in Solana’s ability to outperform Ethereum, a stance that contrasts with the cautious outlook presented by Standard Chartered. SkyBridge Capital, under Scaramucci’s leadership, holds significant investments in Solana alongside Bitcoin, reflecting a bullish stance on the blockchain’s future.

According to analysts from Cantor Fitzgerald, Solana’s technological advantages over Ethereum are evident across multiple metrics. This optimism is supported by the firm’s substantial holdings in Solana, which are part of a diversified digital asset portfolio that includes Avalanche and Polkadot. SkyBridge Capital’s strategic allocation of approximately 40% of client funds into digital assets underscores a growing institutional confidence in Solana’s ecosystem.

Standard Chartered’s projections, however, offer a more tempered outlook. Their analysts forecast Solana reaching $275 by the end of 2025 and $500 by 2029, while expecting Ethereum to hit $4,000 and $7,500 in the same periods, respectively. This cautious stance is grounded in observed declines in Solana’s network usage and ongoing scaling challenges that may hinder broader adoption. Conversely, Cantor Fitzgerald presents a more optimistic view, particularly regarding Solana treasury companies that accumulate SOL on their balance sheets. Their analysis highlights Solana’s superior technology compared to Ethereum across key performance metrics, suggesting a potentially higher upside for SOL investors.

Solana’s price trajectory since its January 2025 peak of $293.31 has seen a correction to around $145, representing a 23.2% decline year-to-date. Ethereum has experienced a similar downturn, falling 24.75% in the same period. Despite these declines, Solana maintains a market capitalization exceeding $76 billion, while Ethereum remains significantly larger at $304 billion. The technological debate centers on Solana’s high throughput and low transaction costs, which proponents argue provide a competitive advantage over Ethereum’s current scalability limitations. This technological edge is a critical factor in institutional investors’ growing interest and may influence future market dynamics.

SkyBridge Capital’s investment strategy reflects a broader trend of institutional diversification within the crypto space. By allocating substantial capital to a mix of Layer-1 blockchains including Solana, Avalanche, and Polkadot, alongside Bitcoin, the firm is positioning itself to capitalize on emerging blockchain innovations. This diversified approach mitigates risk while allowing exposure to potential high-growth assets. The inclusion of digital funds and a dedicated coin fund, totaling approximately $300 million, further illustrates a sophisticated investment framework designed to navigate the evolving digital asset landscape.

Anthony Scaramucci’s endorsement of Solana as a potential “Ethereum killer” injects renewed vigor into the ongoing discourse surrounding blockchain supremacy. While Standard Chartered’s projections offer a more tempered outlook, contrasting views from Cantor Fitzgerald and SkyBridge Capital highlight the complexity and dynamism of the crypto market. Institutional investments and technological advancements will likely play pivotal roles in shaping Solana’s trajectory. Investors should closely monitor these developments, balancing optimism with prudent analysis to navigate the competitive Layer-1 blockchain environment effectively.