Ethereum might get all the attention from crypto investors, but don’t sleep on Solana.
Over the past decade, Ethereum (ETH 3.26%) is one of the most successful cryptocurrencies in the world. During this period it increased by 120,000%.
But there are now a growing number of highly regarded Ethereum challengers, and one of the best is Solana (GROUND 6.22%). So, which is the better investment right now: the market incumbent (Ethereum) or the upstart rival (Solana)?
Historical performance
Based on past performance, Ethereum appears to have the edge over Solana. His record over the past five years is particularly impressive. In 2020, Ethereum skyrocketed 472%, then followed up with an equally stellar 2021, where it soared 395%. In 2023, Ethereum’s value increased by 93%, followed by a solid 46% return in 2024.
Today’s change
(-3.26%) $-102.27
Current price
$3031.85
Key Data Points
Market capitalization
365 billion dollars
Daily scope
$2960.75 -$3215.64
52 week range
$1398.62 -$4946.05
Volume
40B
Average flight
0
Gross margin
0.00%
Dividend yield
N / A
The only down year for Ethereum was 2022, where it lost 68% of its value. If you abandoned Ethereum during crypto winter 2022, you probably lost everything. But if you’ve held on to your position, you’re probably making a significant profit right now.
Solana has been much more volatile than Ethereum. After its launch in 2020, Solana almost doubled in value. This followed with an even more impressive 2021, where it was one of the top crypto performers on the planet, up over 11,000%. However, in 2022, Solana has lost more than 94% of its value. Many have given up on it altogether.
Today’s change
(-6.22%) $-8.65
Current price
$130.37
Key Data Points
Market capitalization
$72 billion
Daily scope
$129.33 -$142.40
52 week range
$96.70 -$293.31
Volume
7.6B
Average flight
0
Gross margin
0.00%
Dividend yield
N / A
While Solana has rebounded with a stellar 919% return in 2023 and an 86% return in 2024, it no longer looks like the stellar investment it once did. In 2025, Solana is still down almost 20% for the year.
Institutional support
Here too, Ethereum appears to have a clear advantage. It has become Wall Street’s favorite blockchain, due to its dominance of the decentralized finance (DeFi) market. And new US crypto legislation could make Ethereum even more dominant. Indeed, Ethereum is by far the best blockchain when it comes to stablecoins, which have become one of the fastest growing categories in the crypto market.
Although Solana is showing signs of upending Ethereum’s leading role in the DeFi market, it is far from challenging Ethereum. For example, Ethereum accounts for 63% of all total value locked (TVL), a key metric for measuring the strength of DeFi. Solana comes far behind, with a market share of only 8%.
Key factors to consider
But certain factors could tip the scales in Solana’s favor. One of them is its lightning-fast transaction speeds. While the main Ethereum blockchain can only handle 15-30 transactions per second, Solana has just demonstrated the ability to handle 100,000 transactions per second. In November 2023, Cathie Wood of Ark Invest suggested that Solana’s superior speed, combined with its lower costs, could be enough to migrate developers, users, and institutions to Solana.
Image source: Getty Images.
There has already been evidence of this in the world of DeFi. Ethereum once dominated in terms of 24-hour trading activity on its decentralized exchanges, but Solana overtook Ethereum in late 2024 and hasn’t looked back since. This is largely due to a surge in interest in coin trading, where Solana is the clear market leader.
Additionally, in terms of revenue generated, Solana is growing at a faster rate than Ethereum. According to a report by 21Shares, the Solana blockchain ecosystem generated nearly $3 billion in revenue over the past 12 months.
And the winner is…
It’s hard to argue against Ethereum. It’s been so good, for so long, and has a clear first-mover advantage over other layer 1 blockchain networks such as Solana. For good reason, it is the second most popular cryptocurrency in the world, with a strong market capitalization of $410 billion.
But if cryptocurrencies are valued like tech stocks are, investors should also focus on growth prospects and future cash flows. And this is where Solana seems to have the advantage. Over time, Solana’s superior transaction processing speeds should give it an advantage in all areas where speed matters, including DeFi and artificial intelligence.
If you are only investing for the short term, Ethereum is the obvious choice. But if you’re investing for the long term, it’s worth taking a closer look at Solana. Over time, I expect it to grow at a faster rate than Ethereum, with a good chance of surpassing it over the next decade.
