Standard Chartered Warns Solana Could Be Stuck as a Memecoin Chain

Solana, the popular layer-1 blockchain, may be turning into a “one-trick pony” focused primarily on memecoin trading, according to a recent report from Standard Chartered.

Solana Dominates in Cheap, Fast Transactions — But At a Cost

The May 27 report, shared with Cointelegraph, highlights how Solana’s architecture — built for high throughput and low fees — has made it a go-to platform for memecoins. However, the bank notes that this might be a double-edged sword:

“Memecoin trading currently accounts for the bulk of Solana’s GDP — measured by application revenue.”

While this activity stress-tested the network’s capacity, the speculative and volatile nature of memecoins raises concerns about long-term sustainability.

Memecoin Hype Fading, and Solana Must Evolve

According to the report, the frenzy around Solana-based memecoins appears to be waning. The combination of lower usage and a focus on cheap transactions isn’t a strong foundation going forward.

Standard Chartered suggests Solana must pivot toward more sustainable sectors that also benefit from low-cost, high-volume transactions — such as high-frequency financial applications and mass-market consumer platforms like social media.

Catching Up May Take Years, Bank Warns

Despite the network’s speed, the report cautions that building these broader applications could take years. In the meantime, Solana may lag behind Ethereum in both adoption and performance:

“We expect Solana to underperform Ethereum in the next 2–3 years, though it could recover in real terms afterward,” the report stated.

Solana’s Competitive Advantage Is Narrowing

Historically, Solana has positioned itself as a high-speed alternative to Ethereum with lower costs. But Ethereum’s recent progress with its layer-2 solutions — especially following the Dencun upgrade — has closed that gap significantly.

Ethereum L2s Drive Cost Down, Pressure Solana

With L2 platforms now offering similar transaction fees, Solana’s cost advantage is fading. Standard Chartered pointed out that Ethereum’s modular scaling approach — separating data, execution, and consensus — has made it more adaptable while keeping its decentralized core intact.

“Post-Dencun, Ethereum can now scale affordably without compromising security,” the bank wrote.