Solana can’t beat Ethereum (yet)

May 27, 2025

Reading time: 5 minutes

Standard Chartered picks Ethereum over Solana: Here’s why

Key points:

  • Standard Chartered expects SOL to hit $275 by end-2025 and $500 by 2029, but says Ethereum will remain dominant in the near term.

  • SOL faces short-term challenges from fading memecoin hype, negative funding rates, and a co-founder’s leaked KYC data.

News - Solana (SOL) may be undervalued and primed for long-term growth, but Standard Chartered believes Ethereum will retain its edge, at least for now. In a new report, the bank forecasts SOL to climb to $275 by the end of 2025 and $500 by 2029, supported by strong app-level revenue and high transaction throughput.

However, analysts warn that Solana’s dominance in memecoin trading is fading, and that its broader ecosystem, covering DeFi, payments, and decentralized social apps, has yet to scale meaningfully. As a result, Solana is trading “cheap” relative to its market cap-to-GDP ratio, with markets pricing in a more aggressive discount compared to Ethereum.

Short-term sentiment wavers - Adding to the uncertainty, Solana currently holds a negative funding rate of -0.0002%, making it the only top 10 crypto (excluding stablecoins) in that position. While such rates can sometimes precede a short squeeze, they also signal bearish trader sentiment, especially when memecoin-driven activity is cooling.

$275 is still in sight - Despite short-term pressures, institutional investors are quietly accumulating SOL, according to on-chain data from Glassnode. Some analysts believe the sell-side pressure could reverse quickly, especially if SOL finds traction in high-volume consumer apps, something Standard Chartered expects to unfold over the next 2–3 years.

Then came the hack - Just as bullish forecasts were making headlines, Solana co-founder Raj Gokal became the target of a public data leak. Hackers took over the Instagram account of rap group Migos and posted KYC-style images of Gokal and his wife, including passport photos and personal information. The posts included messages like “You should’ve paid the 40 BTC,” indicating a failed extortion attempt.

According to some reported sources, the incident may be linked to earlier hacking attempts on Gokal’s personal accounts. While no connection has been made to Solana’s protocol or infrastructure, the timing raised alarm across the community.

Quantum threat to Bitcoin? Google says it’s 20x closer than expected

Key points:

  • A new Google study reveals quantum computers may need 20x fewer resources to break Bitcoin-style encryption than previously estimated.

  • While no current hardware can pull it off yet, researchers warn the crypto industry must act now to adopt post-quantum safeguards.

News - A recent breakthrough from Google’s Quantum AI team has slashed the estimated resources needed to crack encryption schemes that underpin cryptocurrencies. Researcher Craig Gidney’s latest paper revealed that a 2048-bit RSA key could be broken in under a week using under one million noisy qubits, a dramatic reduction from the earlier estimate of 20 million qubits.

Though Bitcoin doesn’t use RSA, its elliptic curve cryptography (ECC), used for wallet security and digital signatures, is vulnerable to the same quantum attack model, specifically Shor’s algorithm. Experts now warn that Bitcoin’s cryptographic defenses could collapse much sooner than expected if quantum computing advances at its current pace.

Why Bitcoin holders should care - Cybersecurity expert David Carvalho captured the urgency best: “Quantum is coming for Bitcoin like meteors came for the dinosaurs.”

While today’s machines can’t yet perform these attacks, experts warn that hackers may already be harvesting encrypted data, planning to decrypt it once quantum tech matures. Research group Project 11 is already testing those limits, offering a 1 BTC bounty for anyone who can crack simplified ECC keys using quantum systems.

A global wake-up call - Beyond Bitcoin, quantum computing threatens to undermine encryption across banking, communications, and infrastructure. Google has already moved to quantum-safe encryption protocols internally, while Ethereum co-founder Vitalik Buterin has proposed hard forking blockchains to adapt.

The U.S. National Institute of Standards and Technology has recommended phasing out vulnerable systems post-2030. But Google’s research suggests that timeline may be too late. As one expert put it, “This isn’t science fiction anymore, it’s math, and it’s marching faster than most realize.”

Circle targets NYSE debut with $624M IPO plan

Key points:

  • USDC issuer Circle has filed for an IPO on the New York Stock Exchange under the ticker “CRCL,” targeting up to $624 million.

  • Cathie Wood’s ARK Invest has expressed interest in purchasing $150 million worth of IPO shares, signaling strong institutional interest.

News - Stablecoin issuer Circle is officially heading for Wall Street. The company filed an S-1 registration statement with the SEC on May 27, outlining plans to offer 24 million Class A shares priced between $24–$26, with trading set to begin on the NYSE under the symbol “CRCL.”

Circle itself is offering 9.6 million shares, while 14.4 million will be sold by existing shareholders. At the high end of the price range, Circle could raise nearly $250 million, while the full IPO, including selling stockholders, could total $624 million.

The offering will be led by J.P. Morgan, Citigroup, and Goldman Sachs, alongside other major institutions. Notably, ARK Invest has signaled interest in acquiring up to $150 million in shares, giving the IPO a strong credibility boost from the institutional crowd.

From SPAC dreams to NYSE reality - This isn’t Circle’s first public market attempt. Back in 2021, the company pursued a SPAC merger that would have valued it at $9 billion, but the deal fell through. The firm now targets a valuation of $6.7 billion in this offering, still massive, though slightly more modest than its earlier ambitions.

Circle CEO Jeremy Allaire said the IPO reflects the firm’s commitment to “transparency and accountability” as it transitions to a fully regulated, publicly traded company.

What’s next? - The IPO is still subject to SEC approval and broader market conditions. While no timeline is confirmed, the filing comes at a pivotal moment in the stablecoin wars, as USDC looks to close the gap with Tether’s $152B dominance. Meanwhile, Tether CEO Paolo Ardoino recently commented, “Tether doesn’t need to go public.”

Circle, however, is betting that public markets will help it scale USDC’s adoption across institutional finance and digital payments.

Blockchain.com bets on Africa as crypto laws evolve

Key points:

  • Blockchain.com is expanding into Ghana, Kenya, and South Africa, and opening a new office in Nigeria, its fastest-growing West African market.

  • The move aligns with emerging regulatory clarity across the continent, especially in Nigeria, Ghana, and South Africa.

News - Blockchain.com is scaling up its African footprint as regulatory frameworks across the continent begin to crystallize. The crypto wallet and exchange platform plans to open a physical office in Nigeria this quarter, calling it the firm’s “fastest-growing market” in the region, according to Owenize Odia, General Manager for Africa.

The UK-based firm is also expanding operations into Ghana, Kenya, and South Africa, driven by rising adoption and increasing government efforts to formalize digital asset oversight. Nigeria recently passed a new investment and securities law that introduces licensing for crypto exchanges, making it a top priority for Blockchain.com’s license applications.

Ghana’s central bank, meanwhile, has released draft guidelines for crypto regulation, targeting rollout by September 2025. Kenya remains in the research phase.

South Africa leads in regulation and DeFi - South Africa has emerged as a standout in the continent’s crypto race. According to Ben Caselin, CMO at Johannesburg-based exchange VALR, South Africa’s legal infrastructure and business environment make it an ideal launchpad for regional expansion. The FSCA has already approved 59 crypto licenses, with over 260 applications under review.

On the DeFi front, South Africa’s market may be small globally, but it’s rapidly evolving. Total value locked has crossed $27 million, with forecasts of $180 million by 2028, fueled by strong demand in payments, lending, and DEXs.

What’s next? - As crypto trading bans soften and regulation matures, Africa is becoming a frontier of opportunity. Odia noted that young populations and currency instability are accelerating adoption, and regulatory intent will be critical to Blockchain.com’s expansion strategy.

With clearer rules, institutional interest, and local demand converging, Africa may soon become the crypto industry's next battleground.

Interesting facts

  • In November 2023, Binance, the world's largest cryptocurrency exchange, admitted to money laundering violations and agreed to pay over $4.3 billion in penalties to U.S. authorities. Founder Changpeng Zhao resigned and paid a $50 million fine as part of the settlement.

  • Dawgz AI ($DAGZ), a project combining artificial intelligence with memecoin characteristics, successfully raised over $3.5 million during its presale in 2024. The project aims to offer AI-driven tools for crypto trading and market analysis.

  • Reports emerged in May 2025 suggesting that Trump Media & Technology Group planned to raise $3 billion to invest in cryptocurrencies. However, the company has denied these claims, labeling the reports as unreliable.

Top 3 coins of the day

PancakeSwap (CAKE)

Key points:

  • At press time, CAKE was trading at $2.87, up 18.69% over the last 24 hours.

  • It broke above the upper Bollinger Band, logging its highest daily gain since mid-March.

What you should know:

CAKE surged by nearly 19% in a breakout move backed by strong fundamentals and rising demand. The rally followed multiple bullish catalysts, including the rollout of PancakeSwap’s tokenomics 3.0 upgrade, which reduced daily emissions and introduced a 5.3 million CAKE annual burn, improving long-term supply dynamics. Meanwhile, PancakeSwap Infinity’s trustless fee discounts and anticipation around BNB’s upcoming Maxwell upgrade added further fuel. The protocol also recently ranked second in daily fee revenue, outpacing USDC, with $7.24 million generated in just 24 hours, reflecting surging user activity. On the technical front, CAKE pierced the upper Bollinger Band, while the MACD flipped bullish with rising histogram bars. If this momentum continues, CAKE could target the $3.10–$3.30 resistance zone. Support now lies near the midline of the Bollinger Bands around $2.40.

Quant (QNT)

Key points:

  • At press time, QNT was trading at $106, up 1.26% over the last 24 hours.

  • It broke past short-term resistance at $105, extending its weekly uptrend.

What you should know:

QNT extended its bullish momentum, gaining over 1% to reclaim levels above $105. The move followed a wave of bullish news, including the announcement of Overledger Fusion, Quant’s new “Layer 2.5” network that enables cross-chain smart contracts and privacy tools. The team also launched Quant Flow, a programmable money solution aimed at modernizing institutional finance. CEO Gilbert Verdian’s upcoming keynote at EBAday 2025 further added to investor confidence. The Parabolic SAR stayed below the candles, signaling continued bullish control, while RSI climbed to 67.27 without entering overbought territory. Volume held steady, suggesting sustainable interest. If QNT maintains momentum, it could target resistance near $110–$115. However, failure to hold above $100 could invite a short-term pullback toward $95–$97.

Monero (XMR)

Key points:

  • At press time, XMR was trading at $390, down 3.01% over the last 24 hours.

  • It pulled back after failing to hold above the $400 psychological resistance level.

What you should know:

XMR dropped 3% as traders took profits following a seven-week rally that saw it break past $400 for the first time since early 2021. Despite the dip, the broader uptrend remained intact, with price holding above the 9-day SMA. The pullback came after Monero officially flipped Litecoin and Toncoin to re-enter the top 25 cryptocurrencies by market cap, fueled by a 300% YTD rally. Catalysts included rising demand for privacy coins, rumors of a Coinbase relisting, and the upcoming FCMP++ privacy upgrade. XMR also hit a record-high hashrate and gained attention from illicit actors converting stolen Bitcoin into Monero, further reinforcing its appeal as a censorship-resistant asset. Technically, the Awesome Oscillator remained positive but showed signs of slowing momentum. Volume held steady, suggesting the pullback was corrective. If bulls regain control, XMR could aim for the $420–$440 resistance zone. A close below $385 might expose the token to a drop toward $360–$370.

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