Blockchain Solana de Capa-1 may be evolving a “single trick pony” for the generation and commerce of memecoros, according to a recent standardized report.
According to a Standard Chartered research report, May 27 shared with Cointelegraph, Solana “dominates in areas that demand high volume and low transaction costs” because its design prioritizes the confirmation of rapid and cheap transactions. The report suggested that this has had an involuntary consequence:
“Until now, this has been mainly in the memecoin trade, which represents most of the activity in Solana (measured by ‘GDP’, which is the income of the application).”
Standard Chartered said that the memecoin frenzy served as a stress test for Solana’s escalatability, but came with inconveniences due to the volatility and speculative nature of these assets. As Memecoin’s trade volumes decrease, the bank warns that Solana can fight to maintain the impulse.
Related: Migos account Instagram pirated in apparent supply of blackmail by Cofunder de Solana
Memecoin Trading passed its peak
The report says that Memecoin’s activity based in Solana has passed its peak, and “the decrease in ‘cheap’ use and trade are not a good combination.” The Bank suggested that Solana should expand to other sectors that need to process large volumes of transactions economically and quickly.
According to the report, these sectors could include high performance financial applications and traditional consumption applications such as social networks. Even so, the scale of such requests can take years, according to the bank, with serious consequences for Solana:
“As a result, we hope Solana has a performance less than Ethereum in the next two or three years, before catching up, at least in real terms.”
Solarium: Solana after Bitcoin? Network activity, point graphic pattern at the price of $ 300 sun
Solana’s edge is fading
Solana has long been positioned as a fast and economical layer 1 block chain with smart contract support, directly competing with Ethereum. However, that edge may be narrowing.
The Ethereum Layer-2 platforms have been updated with Solana in terms of average transaction cost from the update of the Dencun network in March 2024. This change has pressed the Solana value proposal as the cheapest high-performance block chain. Standard Chartered acknowledged that the modular design of Ethereum, which separates the availability of data, execution and consensus, has allowed him to climb more efficiently while preserving decentralization:
“The modular approach allows Ethereum to climb the transactions to a low cost (update after delivery) while maintaining the safety benefits of a highly decentralized Mainnet block chain.”
Magazine: Memecoins are dedicated, but Solana ‘100x better’ despite the drop in income
