Ethereum News

Fidelity: Why Ethereum Outshines Solana for Long-Term Investors

by Crypto Hobby

Updated July 10, 2025

Ethereum and Solana blockchain logos — Ethereum and Solana

Fidelity, a prominent financial institution, has weighed in on the ongoing rivalry between Ethereum (ETH) and Solana (SOL). While acknowledging Solana's impressive growth in revenue and Total Value Locked (TVL), Fidelity ultimately gives Ethereum the edge due to its robust fundamentals, developer activity, and stablecoin supply, positioning it as a more stable long-term investment.

Fidelity's Assessment: Fundamentals Over Fast Growth

Fidelity's analysis highlights a key distinction between the two blockchain giants. While Solana has demonstrated faster growth rates in revenue and TVL, capturing significant community interest, Ethereum's foundational strengths are deemed more crucial for long-term investors. The report emphasizes:

Ethereum's Strengths: Strong developer activity, substantial Total Value Locked (TVL), and a robust stablecoin supply.
Solana's Growth: Rapid improvement in revenue and TVL, indicating strong recent adoption.

The Role of Speculation and Short-Term Trends

Fidelity points out that Solana's recent surge is partly fueled by short-term narratives, particularly the boom in memecoin projects on its network. While memecoins can drive significant short-term gains, they are often speculative and tend to thrive during bull markets, fading during bearish conditions. This reliance on speculative trends makes Solana more susceptible to market volatility compared to Ethereum, whose value is less tied to such fluctuations.

Ethereum's Stability Versus Solana's Potential

Ethereum's robust fundamentals contribute to its stability, making it a more predictable asset for investors. In contrast, Solana's future growth could be significantly impacted by upcoming upgrades. The anticipated Firedancer upgrade, for instance, aims to dramatically enhance Solana's scalability, potentially increasing its transaction processing capabilities to nearly one million transactions per second (TPS). This could position Solana as a formidable competitor to Ethereum in the long run.

Key Takeaways

Fidelity favors Ethereum for its strong fundamentals, including developer activity, TVL, and stablecoin supply.
Solana shows faster growth in revenue and TVL but is more influenced by short-term trends like memecoin speculation.
Ethereum's value is less tied to speculation, offering greater stability.
Solana's upcoming Firedancer upgrade could significantly boost its scalability and competitiveness.