Solana vs Ethereum in Tokenization: Why It’s Not Winner-Takes-All

Core Insights - The venture firm Dragonfly asserts that Ethereum and Solana will coexist in the expanding market for tokenized assets, emphasizing that "you can't just have one blockchain" [1] - Tokenized assets have surged past $23 billion in 2025, marking a 260% increase in a year, highlighting the growing interest in real-world assets (RWAs) [2] - Ethereum currently dominates the market with an on-chain asset value of approximately $183.7 billion, while Solana holds around $15.9 billion, indicating Ethereum's position as the "Wall Street" of tokenization [3] Tokenization Market Dynamics - Tokenization transforms real-world assets like U.S. treasuries and real estate into digital receipts on a blockchain, enabling 24/7 trading [2] - Major institutions are increasingly focusing on where to allocate their investments in tokenized assets, with Ethereum hosting most stablecoins and institutional products [2] - Solana's low fees and high trading volumes make it appealing for high-speed trading activities, showcasing its unique advantages [2] Chain Specialization - The trend of applications moving between chains, such as Sorare transitioning from Ethereum to Solana, illustrates the need for different blockchains to cater to varying requirements [3] - The debate over which blockchain will dominate is less critical than understanding the strengths of each chain, as different chains will likely specialize in different areas [3] - Hadick suggests that no single blockchain can accommodate all tokenized assets, indicating a future where multiple chains coexist, similar to the payment networks of Visa and Mastercard [4]