Solana's Price Rises 1.19% Despite Network Stability Concerns

Solana's latest price was $176.55, up 1.189% in the last 24 hours. Solana, a blockchain platform known for its high-speed transaction capabilities, has recently faced challenges that have raised concerns among investors about its long-term reliability. Despite its innovative approach, the network has experienced outages and scalability limitations, prompting some investors to explore emerging alternatives in the crypto space. Solana's partnerships and technological advancements, such as the Solana Attestation Service, position it for moderate growth. However, network stability issues continue to weigh on investor confidence.

Standard Chartered has released a detailed Solana forecast, predicting that the network may lag behind Ethereum until 2027 as alternative sectors like DePIN take time to mature. The report highlights that Solana’s ecosystem relies heavily on memecoin trading. The network’s low fees and ability to handle many transactions per second have positioned it as the leading platform for these tokens. While this has validated the network’s speed and scalability, the report added that memecoin trading is no longer expanding and may have already peaked. The report warned that a decline in this activity, combined with Solana trading below its GDP potential, may limit its near-term performance. The report noted that “declining usage and trading ‘cheap’ are not a good mix,” referring to the drop in network activity and the undervalued state of the token. Solana’s future growth depends on new sectors gaining traction, which, according to the report, could take several more years. Financial applications, social platforms, and decentralized infrastructure projects are among the areas Solana may support in the future. However, the report noted that these projects, most of which started during the 2021 decentralized finance expansion, are still maturing and have yet to generate significant on-chain revenue.

Solana vs Ethereum analysis in the report highlights that Ethereum will likely outperform Solana through at least 2027. The report projects that the ETH to SOL ratio could climb from 15 to 17 by the end of that period, reflecting Ethereum’s stronger position in terms of blockchain GDP and user adoption. The report emphasized that Solana may continue to trade below its GDP due to limited application usage beyond speculative trading. The report added that the next few years will be important for evaluating whether Solana can expand into sectors with more sustained activity and revenue generation. The report does not dismiss long-term potential but places more weight on current performance indicators and the time needed for network diversification.

Solana users can now access the network through a MetaMask wallet. MetaMask announced that its Solana integration was live, allowing users to transact on the second-largest smart-contract platform and interact with Solana-based applications through the wallet. The integration is currently only on desktop, but it is slated to go live on the MetaMask mobile app in the coming weeks. MetaMask is the Ethereum network's most popular wallet, and this integration will make it easier for users to manage their Solana and Ethereum accounts in one interface. This move is expected to increase the adoption of Solana and make it more accessible to a wider audience.