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, that question becomes increasingly urgent.
By 2025, this choice will no longer be merely technical. It is a showdown 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 stage 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 pillar of modern DeFi. It is where secure, highly composable applications can develop, and where long-term financial infrastructure is gradually forming. Financial institutions looking to securely tokenize assets turn to Ethereum, and the capital flows here due to security factors. The fact that over 55% of total value locked (TVL) on major chains is present on Ethereum is clear evidence of its dominant position.
In contrast to Solana's 'one size fits all' single-layer architecture, Ethereum pursues a modular scaling strategy. Layer 1 serves as the foundation, while Layer 2 handles specialized tasks like microtransactions or gaming, helping to avoid congestion on the main chain. This structure allows for scalability while maintaining decentralization. With the implementation of Proto-Danksharding in early 2025, transaction costs on Layer 2 have significantly dropped – 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 comprehensive composability. While individual applications like order book exchanges can operate on L2, it still feels like a temporary solution rather than a long-term design. Real integrated DeFi requires synchronous, on-chain interoperability – which is optimized when everything operates at a single foundational 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 hard to recover.
The developer experience is also a significant advantage. Writing smart contracts on Ethereum is much simpler than on Solana, enabling developers to create secure and thoroughly tested code. This maturity allows developers on Ethereum to confidently deploy immutable contracts – they trust in the security. It is no coincidence that most major DeFi innovations have originated from Ethereum. With over 1,388 active protocols compared to Solana's 232, the numbers speak for themselves.
When security, composability, and developer trust converge, the entire ecosystem benefits.
The fact that leading centralized exchanges like Coinbase, Kraken, and Bybit are each investing in their own Layer 2s like Base, Ink, and Mantle is no coincidence — it is a deliberate strategy to capitalize on the trend of building more efficient and decentralized blockchain infrastructure.
Solana: Fast, smooth, but lacking decentralization
Solana approaches the scalability issue from a completely different angle. With a single-block architecture, everything happens on Layer 1. This brings some clear benefits: extremely fast transaction speeds, low fees, and a seamless user experience.
In terms of pure performance, Solana is very 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 trade-off. The design of Solana includes the existence of a 'leading node' – a node that organizes transactions. While this helps increase throughput, it raises concerns about centralization. The network is distributed, but not truly decentralized. This distinction is crucial – especially as organizations increasingly prioritize neutrality and censorship resistance.
However, not every application requires high levels of 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 were regulated and deployed by governments in a controlled environment.
While Solana is experiencing strong growth, Ethereum remains the top choice for serious capital.
Sustainable architecture or mass adoption?
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 system that may be complex and slower to integrate? Or should we prioritize scalability and user experience, accepting trade-offs of core crypto values?
Pursuing growth while neglecting the foundation is a short-sighted vision. If protocols trade off 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.
