Solana 'Overwhelms' Ethereum in Real Users and Profitability

▲ Solana (SOL), Ethereum (ETH)

Solana (SOL) is overwhelming Ethereum (ETH) in terms of profitability and the number of real users, signaling a shift in power in the virtual asset market.

Cryptocurrency specialized media Bitcoinist, in an article reported on April 21 (local time), disclosed specific indicators showing that Solana's market dominance has begun to surpass Ethereum. According to data from research institution DeFi Development Corporation, Solana is expected to overtake Ethereum in annual revenue for the first time ever. Solana's revenue recorded so far this year amounts to $1.4 billion, which is more than double Ethereum's performance, which stood at only $522 million. Co-founder Anatoly Yakovenko described this change not merely as a milestone but as a fundamental shift in the market system.

Solana's strength is also evident in the real-world asset sector, which indicates actual network utilization. Solana's real-world asset users exceeded 155,000, narrowly surpassing Ethereum's 153,000. Although Ethereum still holds an advantage in terms of transaction volume, Solana's user base expansion rate is much steeper. The Solana mainnet is establishing itself as a key hub for next-generation decentralized applications, armed with low fees and fast processing speeds.

Global financial giants are also choosing Solana. Visa has decided to utilize the Solana network for its stablecoin payment system for US banks. Large institutions such as Goldman Sachs and Forward Industries have also recognized its technological prowess by tokenizing their shares on Solana. As institutional funds flow heavily into the Solana ecosystem, the landscape of the institutional investment market, once dominated by Ethereum, is rapidly being reshaped.

Market experts are seriously considering the possibility of a "flippening," where Solana's market capitalization surpasses Ethereum's. According to an analysis report, if Solana reaches Ethereum's all-time high market capitalization of $581 billion, Solana's price could surge by approximately 1,178% from its current level, reaching $1,022. Currently, Solana's market capitalization is estimated at around $49 billion, while Ethereum's is approximately $246 billion, meaning a gap still exists, but Solana has demonstrated an overwhelming advantage in terms of growth rate.

As Solana's dominance solidifies, Ethereum's profitability has plummeted by 90% in the last five years, while Solana has recorded a growth rate of over 5,000% during the same period. This stark contrast suggests that virtual asset investors are placing higher value on technological efficiency and practical use cases. Ethereum maintains its position as the second-largest in the market based on strong security, but Solana's rapid pursuit is expected to continue for some time. The network's viability and scalability are projected to be key variables determining the future hegemony of the virtual asset market.

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