{"id":53200,"date":"2025-05-27T18:31:20","date_gmt":"2025-05-27T18:31:20","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/solana-could-lag-ethereum-as-meme-coin-activity-dips\/"},"modified":"2025-05-27T18:31:20","modified_gmt":"2025-05-27T18:31:20","slug":"solana-could-lag-ethereum-as-meme-coin-activity-dips","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/solana-could-lag-ethereum-as-meme-coin-activity-dips\/","title":{"rendered":"Solana could lag Ethereum as meme coin activity dips"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison )<\/b><br \/>\n<\/p>\n<div data-site=\"CoinJournal\">\n<div class=\"-mt-16  mb-8  lg:-mt-20  rounded-md  shadow-md\">\n<div class=\"relative  z-10  post-article-image  rounded  overflow-hidden\" data-site=\"CoinJournal\">\n<picture><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/02\/shutterstock_2327477701-smartcrop-750x375.webp\" type=\"image\/webp\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/02\/shutterstock_2327477701-smartcrop-363x181.webp\" type=\"image\/webp\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/02\/shutterstock_2327477701-smartcrop-750x375.jpg\" type=\"image\/jpeg\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/02\/shutterstock_2327477701-smartcrop-363x181.jpg\" type=\"image\/jpeg\"\/>\n<\/picture>                            <\/div>\n<\/p><\/div>\n<ul>\n<li>Solana\u2019s current funding rate sits at -0.0002%, signalling short pressure.<\/li>\n<li>Solana DEX volumes fell behind Ethereum earlier this year.<\/li>\n<li>Accumulation of SOL suggests long-term investor confidence remains.<\/li>\n<\/ul>\n<p data-start=\"143\" data-end=\"684\">Standard Chartered has cautioned that Solana (SOL) could underperform Ethereum (ETH) due to fading meme coin activity, a key driver of Solana\u2019s on-chain volume in recent quarters.<\/p>\n<p data-start=\"143\" data-end=\"684\">While Solana has proven its technical capabilities, particularly during the recent meme coin trading boom\u2014the bank now sees a risk of underutilisation as seasonal trends shift.<\/p>\n<p data-start=\"143\" data-end=\"684\">According to the bank\u2019s Head of Digital Assets Research, Geoff Kendrick, Ethereum\u2019s broader adoption and institutional partnerships place it in a stronger position for sustained growth.<\/p>\n<h2 data-start=\"686\" data-end=\"726\">Ethereum gains from broader use cases<\/h2>\n<p data-start=\"728\" data-end=\"1048\">Solana has often been positioned as a faster and cheaper alternative to Ethereum, with the ability to handle high transaction volumes at low cost.<\/p>\n<p data-start=\"728\" data-end=\"1048\">However, Standard Chartered points out that much of this activity has been driven by short-term trading of meme coins, a sector known for its volatility and limited utility.<\/p>\n<p data-start=\"1050\" data-end=\"1457\">With meme coin enthusiasm cooling off in 2025, Kendrick projects a possible usage gap for Solana before other applications, such as decentralised finance platforms, gaming projects, or social media integrations, gain critical mass.<\/p>\n<p data-start=\"1050\" data-end=\"1457\">The bank says Ethereum\u2019s advantage lies in its diversified user base, which includes enterprise-level applications, financial products, and long-term smart contract development.<\/p>\n<p data-start=\"1459\" data-end=\"1797\">Blockchain analytics also supports this view. Earlier this year, Ethereum overtook Solana in decentralised exchange (DEX) trading volumes after a slump in trading on Raydium (RAY) and Pump.fun, two of Solana\u2019s most active meme coin platforms.<\/p>\n<p data-start=\"1459\" data-end=\"1797\">That shift underlined Ethereum\u2019s dominance across multiple sub-sectors of the blockchain space.<\/p>\n<h2 data-start=\"1799\" data-end=\"1851\">Market sentiment reflects short-term Solana risks<\/h2>\n<p data-start=\"1853\" data-end=\"2246\">Investors appear to be reacting to these signals. In February, traders began trimming exposure to Solana-based assets due to uncertainty over the future of meme coin projects and delays in scaling up major Solana-native protocols.<\/p>\n<p data-start=\"1853\" data-end=\"2246\">Standard Chartered says these concerns are now being priced into market forecasts, particularly in terms of revenue from transaction fees and new user onboarding.<\/p>\n<p data-start=\"2248\" data-end=\"2647\">One key indicator is Solana\u2019s funding rate. According to blockchain data firm Glassnode, Solana currently has a negative funding rate of -0.0002%, the only such figure among the top 10 cryptocurrencies by market capitalisation, excluding stablecoins.<\/p>\n<p data-start=\"2248\" data-end=\"2647\">A negative funding rate means short sellers are paying fees to hold bearish positions, which typically indicates mounting downward pressure on price.<\/p>\n<p data-start=\"2649\" data-end=\"3060\">However, a negative funding rate can sometimes be a contrarian indicator. Traders may be expecting a short squeeze, where sudden upward price moves force shorts to buy back their positions, potentially creating a sharp rally.<\/p>\n<p data-start=\"2649\" data-end=\"3060\">BeInCrypto reports that the accumulation of SOL by institutional players in May suggests that long-term investors may still see value in Solana, even if near-term performance lags Ethereum.<\/p>\n<h2 data-start=\"3062\" data-end=\"3115\">Analysts say Ethereum remains the dominant layer-1<\/h2>\n<p data-start=\"3117\" data-end=\"3499\">While Solana has demonstrated rapid growth and robust technical infrastructure, analysts from IntoTheBlock believe the network still has significant ground to cover before challenging Ethereum\u2019s dominance.<\/p>\n<p data-start=\"3117\" data-end=\"3499\">The research group said that although Solana may continue to grow and target niche applications, surpassing Ethereum remains a long-term goal rather than an imminent milestone.<\/p>\n<p data-start=\"3501\" data-end=\"3881\">Ethereum\u2019s integration with traditional finance, widespread developer support, and upgrades like the shift to proof-of-stake have helped entrench its position as the go-to blockchain for decentralised applications.<\/p>\n<p data-start=\"3501\" data-end=\"3881\">Until Solana\u2019s next wave of real-world use cases gains momentum, Standard Chartered believes the network\u2019s price and on-chain activity may continue to trail Ethereum.<\/p>\n<p data-start=\"3883\" data-end=\"4083\">As the market matures, both blockchains may find space for growth\u2014but in the short term, Ethereum\u2019s ecosystem breadth and investor confidence give it the edge, according to the bank\u2019s latest analysis.<\/p>\n<div class=\"post-meta\">\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Share this article<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Categories<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Tags<\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<p><a href=\"https:\/\/coinjournal.net\/news\/solana-could-lag-ethereum-as-meme-coin-activity-dips-warns-standard-chartered\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison ) Solana\u2019s current funding rate sits at -0.0002%, signalling short pressure. Solana DEX volumes fell behind Ethereum earlier this year. Accumulation of SOL suggests long-term investor confidence remains. Standard Chartered has cautioned that Solana (SOL) could underperform Ethereum (ETH) due to fading [&hellip;]<\/p>\n","protected":false},"author":3947362361,"featured_media":53201,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/53200"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/3947362361"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=53200"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/53200\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/53201"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=53200"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=53200"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=53200"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}