As the competition between Ethereum (ETH) and Solana (SOL) continues, a report came from Fidelity that will increase the competition.
The report prepared by Fidelity Digital Assets stated that Ethereum's strong fundamentals provide an advantage over Solana in the long term compared to ETH.
Fidelity analysts said Solana’s growth is tied to memecoins, but investors prefer Ethereum for stability.
Fidelity Digital Assets highlighted Ethereum’s strong fundamentals, such as developer activity, TVL, and stablecoin supply, in its 2025 Digital Asset Outlook report, giving ETH a long-term advantage over Solana.
Analysts who also acknowledged Solana’s growth said that SOL stands out with its speed and low transaction costs. However, analysts noted that much of Solana’s success was due to memecoin trading.
At this point, analysts comparing Ethereum and Solana argued that Ethereum's fundamentals are less dependent on speculation and therefore more stable in the long run.
Fidelity noted that upgrades like Solana’s Firedancer and Ethereum’s Pectra upgrade could shape short-term trends, saying:
“Short-term price trends often revolve around narratives, and given the planned upgrades for both networks, a remarkable race could be on the horizon between ETH and SOL throughout 2025,” Solana said.
While Solana’s Firedancer upgrade aims to significantly increase transaction speed, Ethereum’s Prague/Electra (Pectra) upgrade focuses on improving functionality, scalability, and user security.
Ethereum currently offers a distinct advantage over Solana due to its accessibility through exchange-traded products, but that could change with favorable regulations in 2025, analysts said.
Fidelity analysts added that they expect investors to return to Ethereum as the bull market continues.
*This is not investment advice.
