According to a recent standard chartered report, layer -1 blockchain Solana can develop into a memecoin generation and a “one -round pony” for business.
According to a standard chartered research report shared with a coinalgraph on 27 May, Solan is “dominating areas that demand high-trunk, low-lane–cost solutions” prioritizing rapid and cheap transactions due to its design. The report suggested that an unexpected result has been:
“So far, it has been mostly in Memcoin trading, which is responsible for most activity on Solana (as measured by ‘GDP’, which is the application revenue).”
Standard Chartered stated that Memcoin frenzy served as a stress test for Solan’s scalability, but came up with deficiencies due to the instability and speculative nature of such assets. With a decline in the Memcoin trading volume, the bank warned that Solana could struggle to maintain speed.
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Memcoin Trading passed its peak
The report states that the Solan-based Memcoin activity is at its peak, and “the decline in use and ‘cheap’ is not a good mixture.” The bank suggested that Solana should expand to other areas, which need to be processed by cheap and quickly large versions of transactions.
According to the report, those areas may include traditional consumer apps such as high-plunged financial apps and social media. Nevertheless, it may take years to scale such an application, according to the bank, serious consequences for Solana:
“As a result, we hope that Solana reduces the atherium in the next two to three years, at least before catching in real words.”
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Solana’s edge disappears
Solana has long deployed itself with smart contract support as a sharp and inexpensive layer -1 blockchain, which has been directly competing with the atherium. However, that edge can be narrow.
Etharium layer -2 platforms have been caught with Solna in terms of average transaction cost since Denkun Network upgrade in March 2024. The innings has put pressure on the price proposal of Solana as the cheapest high-thruput blockchain. Standard Chartered admitted that the moduleer design of the atherium, which separates data availability, execution and consensus, has allowed it to scale more efficiently while preserving decentralization:
“The modular approach allows the atherium to score the transaction on low cost (post-denkun upgrade) while maintaining the safety benefits of a highly decentralized mannet blockchain.”
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