Standard Chartered Bank Report: Solana Is Becoming a "Meme Chain" and Stuck in Growth Difficulties?

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PANews
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By Adrian Zmudzinski

Compiler: Tim, PANews

According to a recent report published by Standard Chartered Bank, Layer1 blockchain Solana may be evolving into a "single-function platform" focused solely on generating and trading meme coins.

According to a May 27 research report, Solana's dominance in the high-volume, low-transaction cost public blockchain space is aided by its design architecture for fast and low-cost transaction confirmations, and this technological advantage has had an unintended consequence: so far, this has been largely focused on meme coin transactions, which account for the majority of activity on Solana (measured in terms of "GDP", i.e., app revenue).

Standard Chartered said the meme coin boom was a stress test of Solana's scalability, but the volatile and speculative nature of the asset also had drawbacks. With the decline in Meme coin trading volume, the bank warned that Solana may struggle to maintain its momentum.

Meme Mania Passes

Its PeakThe report notes that Solana-based meme mania has passed its peak and that declining usage is not an ideal combination with "cheap" transactions. The bank suggested that Solana should expand into other areas that require high-volume, low-cost, and fast transaction processing, such as emerging areas such as financial settlements, decentralized cloud computing, or real-time data exchange, which require efficient processing of large volumes of transactions, which are highly compatible with the high-throughput nature of its blockchain.

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