Ethereum and Solana are leading blockchain projects that are helping developers build decentralized applications (dApps) in all industries. ETH and SOL have a combined market cap of over $390 billion, with Ethereum being the bigger one. In this Ethereum vs Solana comparison, we will assess the better option between the two.
The case for Ethereum
Ethereum stats
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Market cap: $353 billion.
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Total value locked: $115 billion.
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Architecture: Proof-of-work (PoW)
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YTD performance: -22%.
There are several reasons why Ethereum investors believe in its platform. First, it has one of the best-known brands in the blockchain industry. In terms of brand awareness, only Bitcoin comes first. Therefore, investors believe that this quality will lead to more investments as the industry grows.
Second, Ethereum price has performed well over the years. Its price has moved from less than $10 to over $3,000, making it one of the best performers of all time. Third, the network has maintained a strong market share even as it faces substantial competition from the likes of Solana, Avalanche, and Cardano.
Third, Ethereum is a dynamic platform that is going through changes. After successfully running on the proof-of-work (PoW) model, the developers are transitioning to a proof-of-stake (PoS) framework. The merge of the Beacon Chain and the current platform is set to happen in July.
Therefore, the network will be substantially faster and cost effective. Therefore, developers will not have the need for other blockchains.
The case for Solana
Solana stats
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Market cap: $32 billion.
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TVL: $6.8 billion.
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Architecture: Proof-of-history
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YTD performance: -45%
Solana is a blockchain project that uses an architecture framework known as a proof-of-history. This is a relatively new framework that deals with a high-frequency verifiable delay function (VDF) that takes a number of steps to evaluate blocks.
As a result, Solana has a substantially high throughput of over 2,000 transactions per second (tps) and low costs of about $0.0001 per transaction. This strong performance is one of the main reasons why most developers believe that Solana is a better investment than Ethereum.
Second, Solana has been used to build some of the best-known applications in Web 3.0. Some of these applications are Audius, Brave Browser, and StepN among others. Therefore, there is a likelihood that more Web 3.0 developers will select Solana for their development.
Third, Solana has a longer runway for growth than the mature Ethereum. Besides, it is a young project that has gained a lot of traction from developers already.
Verdict: Ethereum vs Solana
In my opinion, I believe that Ethereum is still a better investment than Solana. I expect that the merger of the Beacon Chain and the main Ethereum will lead to faster speeds and lower costs. As a result, it will become a better alternative for developers.