The development of DeFi has long revolved around a core question: what infrastructure do we want to build the financial future on? As the industry matures and approaches the global financial system, this question becomes increasingly urgent.
By 2025, this choice will no longer be purely technical. It is a confrontation between two visions: Ethereum's decentralized, modular architecture and Solana's single-block, high-performance approach. The outcome of this competition will partly determine the shape of the next phase in decentralized finance – and shape the architecture of the global financial system in the future.
This article shares the personal perspective of Mr. Michael Egorov, founder of Curve Finance, on CryptoSlate about how both networks are positioning themselves for the future – and which name is more likely to lead in the long term.
Ethereum: The foundation of serious DeFi
Ethereum is not just a blockchain – it is the backbone of modern DeFi. This is where safe, highly interoperable applications can grow, and where long-term financial infrastructure is gradually forming. Financial institutions look to Ethereum when they need to securely tokenize assets, and the influx of capital here is due to its security. The fact that over 55% of the total value locked (TVL) across major chains is present on Ethereum is clear evidence of its dominant position.
In contrast to Solana's single-layer 'one-size-fits-all' architecture, Ethereum pursues a modular scaling strategy. Layer 1 acts as the foundation, while Layer 2s handle specialized tasks such as microtransactions or gaming, helping to avoid congestion on the main chain. This structure allows for scaling while maintaining decentralization. With the implementation of Proto-Danksharding in early 2025, transaction costs on Layer 2s have significantly decreased – further reinforcing Ethereum's modular architectural advantage.
However, this model is not perfect. Relying on Layer 2 can fragment the ecosystem. Some DeFi principles need to be implemented on Layer 1 to ensure full interoperability. While individual applications like order-book exchanges can operate on L2, it still feels like a temporary solution rather than a long-term design. True integrated DeFi requires synchronous, direct on-chain interoperability – which is most effective when everything operates on a single base layer.
However, Ethereum's greatest strength is its strong commitment to decentralization. It is one of the most politically neutral blockchains today – which is crucial in an increasingly regulated environment. Speed and user experience can be optimized over time, but decentralization is the foundational principle. Once compromised, it is difficult to recover.
The developer experience is also a significant advantage. Writing smart contracts on Ethereum is much simpler than on Solana, allowing programmers to create safe and thoroughly tested code. This maturity gives Ethereum developers the confidence to deploy immutable contracts – they trust in its security. It is no coincidence that most major DeFi innovations originate from Ethereum. With over 1,388 active protocols compared to Solana's 232, the numbers speak for themselves.
When security, interoperability, and developer trust converge, the entire ecosystem benefits.
The fact that top centralized exchanges like Coinbase, Kraken, and Bybit have each invested in their own Layer 2s like Base, Ink, and Mantle is no coincidence — it is a deliberate strategy to capture the trend of building more efficient and decentralized blockchain infrastructure.
Solana: Fast, smooth, but lacking decentralization
Solana approaches the scalability problem in a completely different way. With a single-block architecture, everything happens on Layer 1. This brings some clear benefits: extremely fast transaction speed, low fees, seamless user experience.
In terms of pure performance, Solana is quite impressive – currently able to handle 3,000–4,000 transactions per second (TPS), with expectations of exceeding 1 million TPS thanks to the upcoming Firedancer validator. Compared to Ethereum's average of 15–30 TPS, this is a significant leap.
However, speed comes at a cost. Solana's design includes the existence of a 'leader node' – a node responsible for ordering transactions. While this helps increase throughput, it raises concerns about centralization. The network is distributed, but not truly decentralized. This distinction is important – especially as organizations increasingly prioritize neutrality and resistance to censorship.
However, not all applications require high decentralization. For example, central bank digital currencies (CBDCs) or consumer applications in gaming and fintech can benefit from the performance and user experience that Solana offers. It would not be surprising if Solana is regulated and deployed by governments in a controlled environment.
Although Solana is experiencing strong growth, Ethereum remains the top choice for serious capital.
Sustainable architecture or mass accessibility?
The focus of the DeFi debate in 2025 – and beyond – revolves around what we should optimize for: structural sustainability or mass accessibility? Should we build a decentralized, robust, and interoperable system even if it is more complex and slower? Or should we prioritize scalability and user experience, accepting trade-offs on the core values of crypto?
Pursuing growth while neglecting the foundation is a short-sighted vision. If protocols compromise on security or decentralization, regulators will impose constraints similar to those in traditional finance. At that point, the promise of DeFi will become meaningless.
That is why institutional capital continues to flow into Ethereum – and I believe this trend will continue. Neutrality and security cannot be added later; they must be built from the ground up.
If we want DeFi to withstand every wave of FOMO and truly become a pillar of a new global financial order, Ethereum is the most sustainable path. It gives us the best chance to build a robust, secure, and uncapturable financial system.
