Solana

is expected to underperform ether over the next two to three years, investment bank Standard Chartered (STAN) said in a research report Tuesday initiating coverage of the cryptocurrency.

The bank expects the ether/solana ratio to increase from 14 currently to 17 by the end of 2027, before falling off again.

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For solana, “this translates into forecasts of $275 at end-2025 (from the current level of $175) and $500 by end-2029,” wrote Geoff Kendrick, head of digital assets research at Standard Chartered.

Solana is the blockchain of choice for memecoin trading, but due to the volatility associated with the sector the token trades cheap relative to its application revenue, the bank noted.

Memecoin activity on Solana also appears to be “past its peak,” the bank said, adding that “declining usage and trading ‘cheap’ are not a good mix.”

The cryptocurrency should dominate future sectors with high volumes, low fees and fast transaction times, such as financial and traditional consumer apps, but reaching scale in these areas could take years, the report added.

Read more: True Markets Raises $11M in Series A, Launches Mobile-First DeFi Trading App on Solana