In the long run, Ethereum’s strong fundamentals carry more weight than Solana’s speed and low fees, according to a new report by Fidelity.

As the bull market advances, investors are likely to pay closer attention to this dynamic, the analysts noted.

When examining the second-largest cryptocurrency by market capitalization, experts highlighted the high developer activity, total value locked (TVL), and stablecoin supply on its network.

While Solana’s TVL and revenue are growing faster than Ethereum’s, the analysts believe much of the revenue spike is driven by meme-coin trading—a cyclical trend likely to stall in a bear market.

In contrast to Solana, Ethereum’s fundamentals are less tied to speculation, providing the asset with more stability over the long term.

“Short-term price movements are often guided by narratives. Throughout 2025, Solana could remain a serious competitor, given anticipated upgrades to both networks,” the report states.

Firedancer on Solana aims to substantially boost transaction throughput, while Pectra on Ethereum will enhance functionality, scalability, and user security, according to the analysts.

They predict Ethereum’s hard fork will attract less hype within the community since it doesn’t directly affect the cryptocurrency’s core value proposition.

Fidelity also pointed out Ethereum’s advantage in accessibility to traditional finance (TradFi) investors via ETF products. While the SEC could solidify Ethereum’s lead by allowing staking options within such an ETF, it might also level the playing field if it approves a similar product for Solana.

Context

Solana’s dApp revenue hit a record $365 million in November, alongside a $243 billion trading volume—also an all-time high.
The surge stems from meme-coin hype. The editorial team at Cryptol identified this phenomenon as one of the top events and trends of 2024.