{"id":28798,"date":"2025-05-27T13:33:13","date_gmt":"2025-05-27T13:33:13","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=28798"},"modified":"2025-05-27T13:33:13","modified_gmt":"2025-05-27T13:33:13","slug":"solana-may-be-a-memecoin-one-trick-pony-standard-chartered","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=28798","title":{"rendered":"Solana may be a memecoin \u2018one-trick pony\u2019 \u2014 Standard Chartered"},"content":{"rendered":"
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\"Solana<\/p>\n

Layer-1 blockchain Solana may be evolving into a \u201cone-trick pony\u201d for memecoin generation and trading, according to a recent Standard Chartered report.<\/p>\n

According to a May 27 Standard Chartered research report shared with Cointelegraph, Solana \u201cdominates in areas that demand high-volume, low-transaction-cost solutions\u201d due to its design prioritizing fast and cheap transaction confirmation. The report suggested this has had an unintended consequence:<\/p>\n

\u201cSo far, this has been mostly in memecoin trading, which accounts for the majority of activity on Solana (as measured by \u2018GDP\u2019, which is application revenue).\u201d<\/p><\/blockquote>\n

Standard Chartered said the memecoin frenzy served as a stress test for Solana\u2019s scalability but came with drawbacks due to the volatility and speculative nature of such assets. As memecoin trading volumes decline, the bank warned that Solana may struggle to maintain momentum. <\/p>\n

Related: <\/strong><\/em>Migos Instagram account hacked in apparent blackmail bid on Solana co-founder<\/strong><\/em><\/a><\/p>\n

Memecoin trading passed its peak<\/h2>\n

Standard Chartered said Solana-based memecoin activity is past its peak, and \u201cdeclining usage and trading \u2018cheap\u2019 are not a good mix.\u201d The bank suggested that Solana should expand into other sectors that require processing large volumes of transactions cheaply and quickly.<\/p>\n

\"Solana\"
Solana decentralized exchange volume. Source: Standard Chartered<\/em><\/figcaption><\/figure>\n

Per the report, those sectors could include high-throughput financial apps and traditional consumer apps such as social media. Still, scaling such applications may take years, according to the bank, with dire consequences for Solana:<\/p>\n

\u201cAs a result, we expect Solana to underperform Ethereum over the next two to three years, before catching up, at least in real terms.\u201d<\/p><\/blockquote>\n

\"Solana\"
Standard Chartered\u2019s crypto target prices. Source: Standard Chartered<\/em><\/figcaption><\/figure>\n

Solana: <\/strong><\/em>Solana following Bitcoin? Network activity, chart pattern point to $300 SOL price<\/strong><\/em><\/a><\/p>\n

Solana\u2019s edge is fading<\/h2>\n

Solana has long positioned itself as a fast and inexpensive layer-1 blockchain with smart contract support, competing directly with Ethereum. However, that edge may be narrowing. <\/p>\n

\"Solana\"
Average transaction fees on Solana and Arbitrum. Source: Standard Chartered<\/em><\/figcaption><\/figure>\n

Ethereum layer-2 platforms have caught up with Solana in terms of average transaction cost since the Dencun network upgrade in March 2024. This shift has put pressure on Solana\u2019s value proposition as the cheapest high-throughput blockchain. Standard Chartered acknowledged that Ethereum\u2019s modular design, which separates data availability, execution and consensus, has allowed it to scale more efficiently while preserving decentralization:<\/p>\n

\u201cThe modular approach allows Ethereum to scale transactions at a low cost (post-Dencun upgrade) while maintaining the security benefits of a highly decentralised mainnet blockchain.\u201d<\/p><\/blockquote>\n

Magazine: <\/strong><\/em>Memecoins are ded \u2014 But Solana \u2018100x better\u2019 despite revenue plunge<\/strong><\/em><\/a><\/p>\n