Ethereum, Solana, who is more winning? Fidelity says: "It" has a stronger fundamental

The debate over who is superior, Ethereum or Solana, has always been a constant topic of discussion in the cryptocurrency community, with much focus on scalability, speed, and Decentralization. Fidelity Digital Assets, a subsidiary of asset management giant Fidelity Investments, recently stated that Ethereum has an advantage, but also acknowledged the rapid rise of Solana.

Fidelity's 2025 outlook report highlights Ethereum's strong fundamentals, including strong developer activity, total locked value (TVL), and stablecoin supply. Although Solana's revenue and total locked value are growing rapidly, most of its revenue comes from meme coin trading, which Fidelity sees as a cyclical trend that is active in bull markets but languishes in bear markets.

Fidelity also pointed out the similarities between Solana's reliance on meme coins and Ethereum's heavy use of Uniswap. However, Fidelity argued that "the fundamentals of Ethereum are less related to speculation and are more stable in the long run." Fidelity stated that these fundamentals can guide long-term investors, but may not be able to predict short-term performance.

Short-term price trends are usually related to themes, and Solana may be a more interesting competitor in this aspect throughout 2025, considering the upgrade plans of both.

Solana's Firedancer upgrade significantly improves transaction speed, while Ethereum's Pectra upgrade focuses on improving functionality, scalability, and user security. However, Fidelity points out that there is less 'community excitement' generated by the Pectra upgrade because from an investment perspective, this upgrade does not directly affect the value proposition of Ether.

However, Fidelity also mentioned that Ether has a more obvious advantage over Solana (SOL) at present. The reason is that investors can invest in Ether through ETFs. However, regulatory decisions may change this situation. If it is not to strengthen the position of Ether, it is to allow Solana to join fair competition. This is a key point to pay attention to in 2025.

Fidelity says that while Solana has short-term momentum, its long-term performance may benefit Ether, just as Solana underperformed in 2024. With the bull market continuing, investors are expected to focus more on fundamentals, which could shift attention back to Ether.

As for Bitcoin, Fidelity believes that after Bhutan and El Salvador, more governments, central banks, and sovereign wealth funds will include Bitcoin as reserve assets this year. The report points out:

In the face of challenges such as inflation, currency depreciation, and increasingly severe fiscal deficits, not allocating national assets to Bitcoin will face more risks than allocating assets to Bitcoin.

Fidelity recognizes the significant growth of stablecoins, but points out that 'they are not yet perfect products' and expects further measures to be taken to address regulatory compliance risks, improve cross-chain interoperability, and integrate with traditional financial systems. The report states that stablecoins can coexist with tokenized bank deposits, improving the efficiency of tokenized securities transactions while maintaining the global reserve currency status of the US dollar.

Fidelity also pointed out that tokenization will be a "killer application" in 2025. In 2023, the nominal scale of tokenized real-world assets (RWA) reached $8 billion, and it is expected to grow to $14 billion in 2024 and $30 billion this year.

Institutions are gradually recognizing the benefits of using blockchain, including faster, cheaper, and relatively less inconvenience in operations. We expect the growth of tokenized asset classes to continue to expand.

In addition, Decentralization finance (DeFi) is also expected to continue to see innovation this year, reflecting the growth of purpose-built blockchain, Decentralization social media, and Decentralization physical infrastructure network (DePIN), as well as the rise in encryption AI field.

Fidelity believes that the adoption of mainstream cryptocurrencies will increase this year, even though the price of Bitcoin has already exceeded $100,000. It is not too late for investors to enter now.

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<Who is better between Ethereum and Solana? Fidelity says: "It" has stronger fundamentals> This article was first published in "Block Times".