Ethereum and Solana are leading blockchain projects that help developers build decentralized applications (dApps) across all industries. ETH and SOL have a combined market cap of over $390 billion, with Ethereum being the largest. In this Ethereum vs Solana comparison, we will evaluate the best option between the two.
The case of Ethereum
Market value: US$ 353 billion. Total amount blocked: $115 billion. Architecture: Proof of Work (PoW) Year-to-date performance: -22%. There are several reasons why Ethereum investors believe in their platform. First, it owns one of the most well-known brands in the blockchain industry. In terms of brand recognition, only Bitcoin comes first. Therefore, investors believe that this quality will lead to more investment as the sector grows. Second, the price of Ethereum has performed well over the years. Its price went from under $10 to over $3,000, making it one of the best performers of all time. Third, the chain maintained a strong market share even as it faced substantial competition from companies such as Solana, Avalanche and Cardano. Third, Ethereum is a dynamic platform that is undergoing change. After successfully running on the proof-of-work (PoW) model, developers are transitioning to a proof-of-stake (PoS) framework. The merger of Beacon Chain and the current platform is expected to take place in July. Therefore, the network will be substantially faster and more cost-effective. Therefore, developers will not need other blockchains.
Market value: US$ 32 billion. TVL: $6.8 billion. Architecture: Proof of History Year-to-date Performance: -45% Solana is a blockchain project that uses an architectural framework known as Proof of History. This is a relatively new framework that deals with a high frequency verifiable delay function (VDF) that performs several steps to evaluate blocks. As a result, Solana has substantially high throughput of over 2,000 transactions per second (tps) and low costs of around $0.0001 per transaction. This strong performance is one of the main reasons why most developers believe Solana is a better investment than Ethereum. Second, Solana was used to build some of the most popular Web 3.0 applications. Some of these apps are Audius, Brave Browser, and StepN, among others. Therefore, more Web 3.0 developers are likely to select Solana for their development. Third, Solana has a longer growth track than mature Ethereum. In addition, it is a young project that has already gained a lot of strength from developers.
Verdict: Ethereum vs Solana
In my opinion, I believe that Ethereum is still a better investment than Solana. I hope the merging of Beacon Chain and Ethereum flagship will lead to faster speeds and lower costs. As a result, it will become a better alternative for developers.