According to a recently founded report, Layer-1-Blockchain Solana for Memecoin generation and trading can turn into a “one-trick pony” for the production and trade in Memecoin.
According to a typical research report on May 27, Solana “dominates in areas by which solutions with high volume with low transaction costs are required”, because the confirmation of fast and low-cost transaction prioritizes. The report suggested that this had an unintentional consequence:
“So far, this has mainly been in Memecoin trade, which makes up nearly all of the activities on Solana (measured by GDP, the appliance turnover).”
According to Standard Chartered, the Memecoin madness served as a stress test for Solana's scalability, but got here with disadvantages on account of the volatility and speculative character of such assets. When Memecoin retail volumes return, the bank warned that Solana has difficulty maintaining the dynamics.
The Memecoin trade has culminated
The report states that the Memecoin activity based in Solana exceeds its climax, and “falling use and trade” low-cost “are usually not mix. The bank suggested that Solana should expand into other sectors that require low-cost and quick processing of enormous transaction quantities.
Solana decentralized exchange volume. Source: Standard Chartered
According to the report, these sectors could include high throughput financial apps and traditional consumer apps corresponding to social media. However, based on the bank, the scaling of such applications can take years with bad consequences for Solana:
“As a result, we expect Solana Ethereum to follow below average in the following two to 3 years before it catches up a minimum of in real terms.”
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Solana's border faded
Solana has long positioned itself as a fast and cheap blockchain in Layer-1 with intelligent contract support and competed directly with Ethereum. However, this edge may be narrowed.
Ethereum Layer-2 platforms have obtained Solana in relation to the typical transaction costs because the dencun network was upgraded in March 2024. This shift has put the worth of Solana under pressure as the most cost effective high throughput blockchain. Standard Chartered recognized that the modular design of Ethereum, which separates data availability, execution and consensus, has made it possible to scale more efficiently and at the identical time maintain decentralization:
“The modular approach enables Ethereum to scale transactions at low costs (upgrade to the Dencun) and at the identical time maintain the protection benefits of a highly decentralized Mainnet blockchain.”
