- Fidelity identifies Solana as a primary Ethereum competitor, citing strong growth in TVL and revenue.
- The Firedancer upgrade aims to enhance transaction speeds, creating greater efficiency for high-frequency trading.
The latest 2025 market outlook from Fidelity highlights Solana’s accelerating growth, positioning it as a strong competitor to Ethereum. The report notes that Solana’s on-chain metrics, including total value locked (TVL) and network revenue, are rising faster than Ethereum’s, signaling a shift in market sentiment and investor confidence.
Solana now holds a 7.28% share of total TVL, more than doubling from 3.48% in March, while Ethereum’s market share has declined from 60.87% to 54.72%. This transition suggests that capital is flowing toward alternative blockchain solutions, particularly those offering higher transaction speeds and lower fees.
Short-Term vs. Long-Term Outlook
Fidelity’s assessment indicates that Solana’s primary utility remains highly speculative, with meme coin trading dominating network activity. While these assets perform exceptionally well in bull markets, they tend to decline sharply in bear conditions, posing higher volatility risks.
Despite this, short-term price action favors Solana, as the network continues to outpace Ethereum’s growth in user adoption and transaction volume. The key differentiator, according to Fidelity, is Ethereum’s reliance on institutional adoption through ETFs, while Solana is growing primarily through organic demand and high-speed execution capabilities.
Upcoming Network Upgrades
Both Solana and Ethereum are preparing for major network upgrades in 2025, but the anticipated impact varies significantly.
- Solana’s Firedancer upgrade is expected to substantially increase transaction speeds, catering to high-frequency trading and automated execution models.
- Ethereum’s Prague/Electra upgrade, while crucial for security enhancements, lacks direct impact on transaction efficiency, making it less attractive from an investment standpoint.
Fidelity’s analysis suggests that transactional efficiency is a key driver of price appreciation, and Solana’s improvements position it as a more attractive choice for traders and developers in the current cycle.
Firedancer is how Solana goes from a race car to a jet plane. pic.twitter.com/jRL2Qh1Crv
— Superteam (@superteam) May 16, 2023
Further strengthening Solana’s market presence is Solaxy, the first Layer 2 blockchain built on Solana, which aims to reduce transaction costs, improve execution speeds, and increase network reliability. Investor interest in Solaxy has been strong, with substantial demand in its presale phase, highlighting confidence in Solana’s scalability solutions.
Solana (SOL) is currently trading at $186.55, reflecting a 4.70% increase in the last 24 hours. Its market capitalization stands at $90.36 billion, with a 24-hour trading volume of $3.37 billion, marking a 23.43% increase. The circulating supply is 484.4 million SOL, with no fixed maximum supply.
Based on ETHNews reports, Solana continues to show strong momentum, driven by high-speed transactions, DeFi growth, and expanding GameFi adoption. The network remains a leader in DEX trading volume, processing over $3.8 billion daily, reinforcing its dominance in decentralized finance.
Additionally, new staking opportunities and liquidity incentives have attracted institutional investors, increasing demand for SOL.
From a technical perspective, SOL is currently testing key resistance at $190 – $195. If it successfully breaks above this level, the next upside target could be $200 – $210. However, if the price fails to hold momentum, a correction towards $175 – $180 is likely, with stronger support at $150.
Fibonacci retracement levels suggest $180 as a critical support level, with $140 representing a deeper correction zone.
