Investment bank Cantor Fitzgerald has endorsed Solana (SOL) as a viable treasury reserve asset for corporations, citing its technical advantages and recent market performance against Ethereum (ETH). This recommendation comes as Solana trades below $150 while Ethereum holds above $2,500, with both assets facing macroeconomic headwinds in Q3 2025.
The endorsement follows Solana’s 65,000 transactions per second capability and sub-cent transaction costs, which contrast with Ethereum’s 30,000 TPS capacity post-2.0 upgrades. Cantor analysts note Solana’s proof-of-history consensus mechanism provides unique settlement finality advantages for institutional use cases.
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Solana’s Technical Edge
Solana’s hybrid consensus model combining proof-of-history and proof-of-stake enables 65,000 TPS throughput compared to Ethereum’s 30,000 TPS with sharding. Network metrics show Solana processing transactions at $0.00025 average cost versus Ethereum’s $1.50 base fee during peak periods.
| Metric | Solana | Ethereum |
|---|---|---|
| Transactions/Second | 65,000 | 30,000 |
| Avg. Fee | $0.00025 | $1.50+ |
| Finality Time | 400ms | 6 minutes |
Ethereum’s Institutional Moat
Despite Solana’s speed advantages, Ethereum maintains dominance in decentralized finance with $42 billion TVL compared to Solana’s $4.7 billion. Major institutions like BlackRock and Fidelity continue expanding Ethereum-based financial products, including spot ETH ETFs expected to launch in July 2025.
Ethereum’s layer-2 ecosystem now processes 78% of all network transactions, reducing mainnet congestion. Arbitrum and Optimism collectively handle over 2.1 million daily transactions, demonstrating scaled usage despite higher base layer costs.
Cantor’s Rationale
In its analysis, Cantor Fitzgerald emphasizes Solana’s 400ms transaction finality and predictable fee structure as critical for corporate treasury operations. The bank suggests allocating 15-20% of crypto reserves to SOL could optimize risk-adjusted returns given its high beta to ETH.
Cantor’s models project Solana could capture 35% of Ethereum’s developer activity by 2026, particularly in gaming and real-world asset tokenization. This growth potential contrasts with Solana’s current $73 billion market cap versus Ethereum’s $300 billion valuation.
Market Impact
The endorsement comes as Solana faces technical resistance at $165 while Ethereum tests support at $2,500. Derivatives data shows ETH futures open interest reaching $9.8 billion versus SOL’s $2.1 billion, indicating greater institutional participation in Ethereum markets.
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- Proof-of-History
- A cryptographic clock that enables Solana to order transactions before consensus, reducing validation time.
- Sharding
- Ethereum’s scaling solution that partitions the network into parallel chains to increase throughput.
- Transaction Finality
- The point at which blockchain transactions become irreversible, critical for settlement assurance.
