A recent report highlighted three major reasons Solana (SOL) has struggled to 
keep pace with Ethereum (ETH), at least from a market performance perspective 
that goes beyond day-to-day price movements. Market expert Dominic Basulto 
from The Motley Fool pointed to factors that, in his view, have shaped 
investor sentiment and affected Solana’s momentum in key areas. The Meme Coin 
Hangover One of the most important drivers, Basulto said, is how many 
investors still associate Solana with the meme coin craze of 2024. During that 
period, Solana became the preferred destination for people minting and trading 
meme coins, and the conversation frequently included the idea of a “meme coin 
supercycle.” At its high point, the meme coin market was valued at around $150 
billion. Today, Basulto said the segment is worth less than $40 billion, and 
many individual meme coins are still far below their 2024 highs. For some 
investors, according to the expert, the connection between Solana and that 
hype cycle never fully faded, which may have contributed to lingering 
hesitation toward the network. Related Reading: Hyperliquid (HYPE) Breaks New 
All-Time High—Surges Past $62 As Momentum Spikes A second explanation involves 
Solana’s attempt to build a mobile-first crypto ecosystem—and the belief that 
it never took off as its early ambitions suggested. Back in June 2022, Solana 
announced the launch of a mobile device called Saga, along with a broader 
mobile strategy. Basulto noted that the Saga was positioned as a breakthrough, 
but at a price of $999, it struggled to compete with mainstream smartphones. 
While Solana later introduced a cheaper alternative, the bigger idea of 
creating a mobile crypto environment did not seem to catch on with investors 
or consumers at the scale required to create a sustained advantage. Solana ETF 
Momentum Falls Short The third reason Basulto raised centers on Solana 
exchange-traded funds (ETFs) and the expectation that they would draw in a 
meaningful wave of institutional interest. He noted that eight spot Solana 
ETFs are now trading in the US, but they have not achieved the momentum seen 
with spot Bitcoin (BTC) ETFs, which launched in January 2024. The rollout of 
spot Solana ETFs was widely viewed as a potential catalyst—something that 
could bring more institutional capital into the space. Instead, Basulto said 
Solana ETF momentum has remained limited. He estimated that total assets under 
management (AUM) for spot Solana ETFs are currently about $1.1 billion, which 
contrasts sharply with spot Bitcoin ETFs that reportedly pulled in $100 
billion in less than 12 months. Related Reading: Bitcoin Miners Warn No Bottom 
Yet, CryptoQuant Says—What On-Chain Metrics Reveal Even so, Basulto’s overall 
conclusion was not pessimistic. He argued that Solana may still represent a 
stronger long-term investment compared with Ethereum, based on what he 
described as a visible shift in Solana’s direction. In his view, Solana is 
pivoting away from meme coins and moving toward stablecoins, while also 
strengthening its presence in decentralized finance (DeFi). Basulto added that 
Solana remains faster and cheaper than Ethereum, and that these advantages 
could keep drawing developers and users toward Solana over time. At the time 
of writing, SOL was trading at around $86, with losses recorded across all 
time frames, amounting to a 51% drop year-to-date (YTD). Meanwhile, ETH was 
trading just above $2,100, also recording losses across all time frames and a 
YTD drawdown of 20%. Featured image created with OpenArt, chart from 
TradingView.com

A recent report highlighted three major reasons Solana (SOL) has struggled to keep pace with Ethereum (ETH), at least from a market performance perspective that goes beyond day-to-day price movements. Market expert Dominic Basulto from The Motley Fool pointed to factors that, in his view, have shaped investor sentiment and affected Solana’s momentum in key &#8230;

Solana Vs Ethereum: What’s Holding Growth Back? 3 Reasons SOL Is Still Lagging

Warsh&#8217;s appointment signals a potential shift towards integrating digital 
assets into mainstream finance, impacting regulatory and market dynamics.
The post Kevin Warsh appointed 17th Chair of the Federal Reserve, bringing 
crypto-friendly stance to the top appeared first on Crypto Briefing.

Warsh&#8217;s appointment signals a potential shift towards integrating digital assets into mainstream finance, impacting regulatory and market dynamics. The post Kevin Warsh appointed 17th Chair of the Federal Reserve, bringing crypto-friendly stance to the top appeared first on Crypto Briefing.

Kevin Warsh appointed 17th Chair of the Federal Reserve, bringing crypto-friendly stance to the top

Sanctions on the PGSA could escalate geopolitical tensions, disrupt global oil 
supply chains, and impact international maritime law.
The post Senator Tom Cotton urges sanctions on Persian Gulf Strait Authority 
over Iran tolls appeared first on Crypto Briefing.

Sanctions on the PGSA could escalate geopolitical tensions, disrupt global oil supply chains, and impact international maritime law. The post Senator Tom Cotton urges sanctions on Persian Gulf Strait Authority over Iran tolls appeared first on Crypto Briefing.

Senator Tom Cotton urges sanctions on Persian Gulf Strait Authority over Iran tolls

The funding underscores AI&#8217;s role as critical infrastructure, potentially 
reshaping global chip availability and advancing secure computation research.
The post White House approves $9B for spy agencies to enhance AI capabilities 
appeared first on Crypto Briefing.

The funding underscores AI&#8217;s role as critical infrastructure, potentially reshaping global chip availability and advancing secure computation research. The post White House approves $9B for spy agencies to enhance AI capabilities appeared first on Crypto Briefing.

White House approves $9B for spy agencies to enhance AI capabilities

The prolonged memory chip shortage could lead to sustained pricing power for 
manufacturers, impacting global tech industries and innovation.
The post Micron Technology CEO expects memory chip shortage to extend beyond 
2026 appeared first on Crypto Briefing.

The prolonged memory chip shortage could lead to sustained pricing power for manufacturers, impacting global tech industries and innovation. The post Micron Technology CEO expects memory chip shortage to extend beyond 2026 appeared first on Crypto Briefing.

Micron Technology CEO expects memory chip shortage to extend beyond 2026

The rise in tokenized commodities highlights blockchain&#8217;s potential to 
revolutionize asset trading, offering liquidity and accessibility benefits.
The post Tokenized commodities market cap hits $7.3B as Ethereum dominates 
with two-thirds share appeared first on Crypto Briefing.

The rise in tokenized commodities highlights blockchain&#8217;s potential to revolutionize asset trading, offering liquidity and accessibility benefits. The post Tokenized commodities market cap hits $7.3B as Ethereum dominates with two-thirds share appeared first on Crypto Briefing.

Solana Vs Ethereum: What’s Holding Growth Back? 3 Reasons SOL Is Still Lagging

Comments