Fidelity: Ethereum has long-term advantages due to its strong fundamentals, while Solana performs better in the short term

Fidelity Digital Assets said in its 2025 Outlook report that Ethereum has an advantage, but also acknowledged Solana's growth. The report highlights Ethereum's strong fundamentals, including developer activity, TVL, and stablecoin supply. While Solana's revenue and TVL are growing faster, most of its revenue comes from Meme coin trading, which Fidelity believes is a cyclical trend that thrives in bull markets but fades in bear markets. The report also pointed out that Solana's reliance on Meme coins has similarities with Ethereum's heavy use of Uniswap. However, the company believes that Ethereum's fundamentals are less linked to speculation and are therefore more stable in the long run. These fundamentals can guide long-term investors but may not predict short-term performance. Fidelity said: "Short-term price trends tend to revolve around narratives, and given the planned upgrades for both networks, Solana could become a more compelling contender in 2025." Solana's Firedancer upgrade aims to significantly increase transaction speeds, while Ethereum's Prague/Electra (Pectra) upgrade focuses on improving functionality, scalability, and user security. However, Fidelity believes that the Pectra upgrade may not attract much interest from the community because it does not directly affect ETH's value proposition from an investment perspective.