Solana (CRYPTO: SOL) and Ehereum (CRYPTO: ETH) are two of the biggest and most important cryptocurrencies, and each is held by an enthusiastic community of investors, users, and developers. Each has the wind at its back, and each could plausibly double faster than the other. So which is the better bet?
This new trend is benefiting Solana, and it’s just the start
The Rise of Solana in Tokenizing Real-World Assets
Solana is making big moves in a new area of finance: tokenizing real-world assets (RWAs). This means things like stocks and other traditional financial assets are being put on the blockchain, and Solana is quickly becoming the platform of choice for this trend.
Trading shares of companies like Apple or Tesla on a blockchain was once a distant concept, but it’s now a reality on Solana. The value of these tokenized stocks on the network is soaring. Recent data shows that the total value of all RWAs on Solana has grown to over $536 million, with a notable single project—a gold tokenization deal—worth as much as $1.1 billion that could drastically increase that number. This rapid growth is a testament to Solana’s speed and low fees.
By bringing traditional assets onto the blockchain, Solana is attracting a significant amount of capital that was previously outside the crypto space. This capital is valuable because once it’s on-chain, it can stay there to earn yield through staking, be traded 24/7, and settle instantly. These features are hard to find in traditional markets, giving Solana a powerful advantage.
Strong Fundamentals and a Bold Roadmap
The influx of assets is backed by Solana’s robust network performance. It continues to rank among the top blockchains for network fees, generating millions of dollars daily. This consistent cash flow is a clear sign that real users see the value in Solana’s block space and are willing to pay for it.
Looking ahead, Solana is not slowing down. The network has a bold new roadmap extending through 2027, with a focus on becoming the foundational layer for “Internet Capital Markets.” Key technical upgrades are on the way, including:
- Application-Controlled Execution (ACE): This feature will give smart contracts more control over transaction ordering, addressing a major issue with market microstructures.
- Alpenglow Consensus Protocol: Planned for later this year, this upgrade is expected to reduce transaction finality time from seconds to milliseconds, putting Solana on par with traditional financial systems.
- Increased Block Capacity: Developers have already increased the network’s capacity and are proposing another boost to meet rising demand.
The Risks Ahead
While Solana’s outlook is strong, it’s not without risks. The network’s low-fee model is heavily dependent on maintaining high throughput. Any major network outage or a sudden regulatory crackdown on tokenized securities could disrupt its momentum.
However, with its accelerating RWA growth, strong network fees, and a clear vision for the future, Solana has a credible path to continue its explosive growth and potentially see another significant surge in value. Sources
Ethereum’s period of undervaluation is ending fast
Ethereum’s critics have long joked that the chain is perpetually six months away from shipping the upgrade that finally fixes everything, like its high gas fees.
This time, though, the shoe is on the other foot, thanks to the latest upgrade, Pectra. With Pectra, validators can now realize higher staking yields, which incentivizes them to keep their capital on the chain. Other changes integrate smart contract functionality into wallets, which will enable more complicated workflows and (hopefully) unlock valuable new types of decentralized finance applications.
Ethereum has already more than doubled during the past three months, surging from about $1,600 in late April to roughly $3,700 today. The rally recaptured ground lost during 2024’s doldrums but still leaves the coin at less than half its inflation-adjusted peak in 2021, suggesting further room to run if network activity accelerates.
Crucially, Pectra smooths Ethereum’s institutional sales pitch. Big custodians can now stake in size without juggling thousands of validator keys, and higher effective balances earn higher rewards.
Assuming that staking yields hold near 3% after the dust settles, large pools of idle Ethereum coins are likely to chase that passive income, shrinking the tradable float. And the chain’s increasing degree of integration with the traditional financial sector, via exchange-traded funds (ETFs), means that it’ll be catching a consistent bid from holders of large sums of capital who will also be highly incentivized to stake their tokens instead of transferring or selling them. So in a nutshell, Ethereum is now soaring on the basis of real progress with its tech that helped it to shake off negative sentiment, which is happening at precisely the same time that a lot of capital was flowing onto the chain in hopes of finding a decent yield.
Which coin clinches it?
Solana and Ethereum have bullish futures, both in the next few quarters and in the next few years.
But right now, Ethereum looks more likely to wow investors. Solana, for all its strengths and technical advantages over Ethereum, wasn’t anywhere near as disliked as the other coin was recently. Therefore, investors won’t be able to capture as much value from the coin reverting to its mean, as they can with Ethereum.
Similarly, while Solana is currently experiencing a boom in stock tokenization-related inflows, Ethereum’s ETF inflows are many times larger for the moment, so it’s the more likely of the pair to double.