As blockchain technology continues to develop, Ethereum has made remarkable achievements as an industry leader. However, it has many problems in scalability and transformation. In sharp contrast, Solana has a clearer vision and strong competitive advantages.
Speaker: Kyle Samani, co-founder of Multicoin. Porter: Bosen Quantitative Consultant Xiao Sun (bosen0722)
Ethereum’s History and Challenges
Ethereum was launched in 2015, and after 9 years of development, it still has not established a clear expansion plan. It chose a roadmap centered on "roll-up" in 2020, and switched from proof of work (PoW) to proof of stake (PoS) in 2022. However, these changes came slowly and in unclear directions, especially after the outbreak of DeFi, Ethereum's roadmap has encountered many doubts.
More seriously, Ethereum’s value capture model is being transferred. The expansion strategy centered on roll-up transfers a large number of transactions from the main chain (L1) to the second-layer network (L2), which leads to the transfer of value creation from Ethereum to other ecosystems. Even if Ethereum’s market value stabilizes at around $300 billion, its positioning is still unclear.
Solana’s Clear Vision
Unlike Ethereum, Solana has set a clear goal since 2017: to build a decentralized trading system that runs 24/7. Solana's founder Anatoly Yakovenko was trapped in the pain point of information asymmetry in the traditional financial system and was determined to achieve fair access to real-time market data through blockchain technology.
Solana launched the mainnet in 2020 and implemented a system upgrade in 2023 to optimize the trading experience. Unlike Ethereum, Solana solves problems such as bridging and network fragmentation, providing an extremely low-fee and stable transaction environment. This focus has enabled Solana’s vision to be realized and significantly increased the value of its on-chain assets.
Solana's Advantages
Solana has approached or surpassed Ethereum in multiple key indicators. First, Solana's on-chain transaction volume has been on par with or even surpassed Ethereum in the past year, demonstrating its core competitiveness in the financial system. Second, Solana's validator rewards have also exceeded Ethereum in some time periods, demonstrating its attractiveness.
Although Solana still lags behind in terms of stablecoin transfer volume, its impressive growth rate suggests that it is expected to surpass Ethereum in this area in the future.
in conclusion
Compared with Ethereum's slow development path and lack of clear direction, Solana has gradually become a strong competitor with its focused vision and continuous technological innovation. Whether Solana can surpass Ethereum in all aspects still needs time to verify, but its strong growth momentum has attracted widespread attention in the industry.
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