As the strong competition between Ethereum (ETH) and Solana (SOL) continues, there is a new report comparing Sygnum Bank ETH and SOL.
Sygnum Bank stated that institutions prefer Solana over Ethereum.
According to Swiss cryptocurrency bank Sygnum Bank, institutions have recently said that they prefer Solana’s scalability over Ethereum’s stability and security advantages.
At this point, Sygnum Bank, citing Visa’s use of Solana for USDC payments and Franklin Templeton’s turn to Solana for an investment fund on the platform, said:
” Visa recently integrated Solana for USD Coin payments. Visa chose Solana because of its high efficiency and low cost.
Multi-trillion dollar asset manager Franklin Templeton also announced plans to launch an investment fund around Solana.
Citi also said it was considering Solana for cross-border payments.”
Solana Outperforms Ethereum!
Sygnum Bank noted that Solana has risen more than Ethereum, pointing out that the price of SOL has increased by 300% on a yearly basis and 600% since 2023.
The bank also noted that with the approval from the SEC, the risk of Ethereum becoming a security has significantly decreased.
While the bank praised Solana over Ethereum, it said it believes ETH makes more sense for traditional investors than Bitcoin because it is easier to value.
While Sygnum Bank stated that Solana was preferred and supported more by large institutional investors than ETH, former CIA agent Edward Snowden said that despite this support, Solana was centralized, could be a target for state interventions and carried risks.
*This is not investment advice.