Banks are increasingly adopting Ethereum as Solana experiences a demand slowdown, according to Arthur Hayes. The recent surge in Solana's popularity, driven by memecoins, has waned, prompting financial institutions to turn to Ethereum for its robust security and advanced Layer 2 infrastructure. These Layer 2 solutions, such as Lighter and Rise, enhance Ethereum's capabilities for institutional activities like stablecoin issuance and settlement operations, solidifying its position as a leading platform for public-chain applications.