Ethereum Maintains Institutional Lead as Solana Gains DeFi and Market Momentum, Says Sygnum

Swiss and Singapore-regulated bank Sygnum has released detailed research comparing Ethereum (ETH) and Solana (SOL). While Ethereum retains its dominance in institutional adoption, revenue generation, and tokenized asset activity—benefiting from stable inflows like BlackRock’s BUIDL fund—recent market narratives and risk appetite have shifted in favor of Solana. Solana has shown robust growth in transaction volumes and protocol fees, particularly led by memecoin trading, but protocol revenue still lags behind Ethereum by two to two-and-a-half times. DeFi total value locked (TVL) on Solana has climbed from 9.5% to 11.5% year-to-date, while Ethereum’s TVL share dropped from 63.5% to 55%. Sygnum highlights that Ethereum’s superior security, stability, and sustainable revenue model make it the primary blockchain for regulated institutions, accounting for 57% of tokenized assets, whereas Solana’s share is below 3%. However, Solana’s fee distribution favors validators, which could limit value accrual for SOL token holders. Recent protocol upgrades and strategic pivots have helped Ethereum regain market momentum and maintain strong fundamentals. Sygnum concludes that current positive sentiment for Solana could drive further short-term growth, but Ethereum’s entrenched role in DeFi, stablecoins, and institutional tokenization keeps it the preferred chain for traditional finance. The competitive landscape will depend on Solana’s ability to diversify revenue streams and attract greater institutional trust.