Fidelity Digital Assets sees Ethereum as having strong fundamentals but recognizes Solana as a rising contender. Ethereum’s developer activity, total value locked, and stablecoin supply showcase its strengths. Solana, however, is growing faster in revenue and TVL, largely due to memecoin trading.
Fidelity views memecoin revenue as cyclical, thriving in bull markets but fading in bear markets. The report compares Solana’s reliance on memecoins to Ethereum’s use of Uniswap. Yet, Ethereum’s fundamentals are less speculative, making it more stable long-term.
Fidelity highlights Ethereum’s Prague/Electra (Pectra) upgrade focusing on scalability, functionality, and safety. Solana’s Firedancer upgrade aims to boost transaction speed. Fidelity notes that Solana’s upgrade could attract short-term excitement, unlike Ethereum’s.
Ether’s accessibility via exchange-traded products gives it an edge. Regulatory decisions could level the field or boost ether further. Fidelity expects investors to shift focus to fundamentals as the bull market progresses.
Fidelity on Bitcoin
Fidelity’s report projects bitcoin as a valuable asset across various economic scenarios in 2025. Governments and central banks may increasingly add bitcoin to their treasuries. Bhutan and El Salvador are leading examples of this trend.
Fidelity argues that ignoring bitcoin poses higher risks than adoption. Inflation, currency debasement, and fiscal deficits drive this perspective.
Stablecoins, Tokenization, and DeFi Insights
Stablecoins continue growing but need improved compliance, interoperability, and financial system integration. They could coexist with tokenized bank deposits, enhancing global financial efficiency. Fidelity identifies tokenization as the “killer app” of 2025. The value of tokenized assets could grow from $14 billion in 2023 to $30 billion by 2025.
DeFi innovation is expected to thrive with growth in purpose-built blockchains, decentralized social media, and crypto-AI. Fidelity sees decentralized infrastructure networks (DePINs) as another promising area.
Mainstream Adoption Not Too Late
Fidelity believes mainstream crypto adoption will grow in 2025. It’s still “not too late” for investors to enter. With bitcoin surpassing $100,000, Fidelity predicts a new era for digital assets lasting years or decades. This era could impact industries, technologies, and even nation-states.
Disclaimer: This article is informational and not financial advice. Fidelity’s report reflects their outlook and projections for the crypto market in 2025.
