Fidelity considers Solana a ‘notable rival’ but prefers Ethereum’s fundamentals

It is “not too late” for investors to go in, according to Fidelity, which also predicts that bitcoin and other cryptocurrency will do well this year.

The ongoing argument between Solana SOL -0.85% and Ethereum ETH -1.07% centers on decentralization, speed, and scalability. Ethereum has the advantage, according to Fidelity Digital Assets, the cryptocurrency division of the massive asset management firm Fidelity Investments, but it recognizes Solana’s expansion.

Fidelity emphasized Ethereum’s solid foundation in its 2025 Look Ahead research, citing its stablecoin supply, total value locked, and active development community. Fidelity views memecoin trading as a cyclical activity that flourishes in bull markets but wanes in bad ones, despite the fact that Solana’s revenue and TVL are increasing more quickly.

Additionally, Fidelity pointed out parallels between Ethereum’s extensive usage of Uniswap and Solana’s dependence on memecoins. However, it said that Ethereum is more stable over the long term since its foundations are less dependent on speculation. According to Fidelity, these principles serve as a guide for long-term investors but may not be able to forecast immediate outcomes.

“Short-term price trends often revolve around narratives, and Solana may be the more notable contender in this regard throughout 2025 given the planned upgrades for both networks,” said Fidelity.

While Ethereum’s Prague/Electra (Pectra) update focuses on enhancing functionality, scalability, and user safety, Solana’s Firedancer upgrade seeks to dramatically increase transaction speed. However, Fidelity pointed out that as the Pectra improvement has no direct effect on Ether’s value proposition from a financial perspective, it is probably going to cause less community excitement.

Because it is accessible via exchange-traded securities, Ether presently has a distinct edge over Solana; however, this might alter according on regulatory choices, according to Fidelity. It also said that such choices might either level the playing field or improve Ether’s standing, making it a crucial aspect to monitor in 2025.

According to Fidelity, even if Solana lacks immediate momentum, its performance may eventually help ether, just as Solana’s prior underperformance did prior to 2024. According to the report, investors are anticipated to concentrate more on fundamentals as the bull market continues, which may cause them to return to ether.

Also Read: Mantra and DAMAC Group Sign $1B Tokenized Asset Plan