Core Insights - Solana is significantly outperforming Ethereum in terms of decentralized finance (DeFi) activity, indicating a potential for faster growth [1][4]. Market Activity Comparison - Solana has recorded approximately $1.4 trillion in decentralized exchange (DEX) trading activity over the past year, while Ethereum has seen around $699 billion [4]. - Despite Ethereum's market cap being about $506 billion compared to Solana's $117 billion, Solana's DEX activity is roughly double that of Ethereum, suggesting it may be undervalued [5]. Structural Considerations - Ethereum's scaling strategy is modular, directing traffic to Layer-2 (L2) chains to avoid congestion on the main chain, which contributes to its lower DEX activity [6]. - The migration of activity to L2 chains does not necessarily enhance Ethereum's value, as not all L2s add value to the main chain, complicating the ecosystem for investors and users [7]. Usage Intensity - The trading volume on Solana's exchanges indicates a higher usage intensity compared to Ethereum's exchanges, reinforcing the argument for Solana's investment potential [8].
Here's 1 More Big Reason to Buy Solana Instead of Ethereum in 2025
Yahoo Finance·2025-09-26 10:15