Fidelity Identifies Solana as a Potential Rival to Ethereum in the Blockchain Sphere
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In a recent report by Fidelity, both Ethereum and Solana have been highlighted for their unique strengths and potential in the rapidly evolving digital asset landscape.
Ethereum, endorsed by Fidelity as a store of value and economic layer, is positioned as the long-term foundational blockchain. Its institutional credibility, bolstered by upgrades like Pectra that improve scalability and throughput, is driving growth. In fact, Ethereum recently surpassed Solana in decentralized exchange (DEX) volume and 24-hour chain fees, signaling renewed dominance in DeFi.
On the other hand, Solana excels in the short term with exceptional network performance and economic activity. The blockchain has maintained over 15 months of uptime, processing over 162 million daily transactions with very low median fees. Solana commands 81% of all crypto DEX transactions and has generated significant Real Economic Value, with over $550 million revenue in January 2025 alone.
Here's a summary of how the two blockchains compare:
| Aspect | Ethereum (Long-term fundamentals) | Solana (Short-term advantages) | |-------------------------|----------------------------------------------------------------|------------------------------------------------------------------| | Institutional Support | Endorsed by Fidelity as a store of value and economic layer[3][5] | Less institutional recognition but strong developer activity[1] | | Upgrades & Scalability | Pectra upgrade enhances throughput by 100x, improving DeFi | Consistent low fees, 65,000 TPS, 15+ months uptime[1][2] | | Transaction Volume | Surpassed Solana in DEX volume and 24h fees in mid-2025[4] | Commands 81% of DEX transactions in 2024, >162 million tx/day[1] | | Fee Levels | Improving but higher than Solana currently | Median fee ~$0.003 even in peak demand periods[1] | | Real Economic Value | Seen as a digital economy akin to sovereign nations | $550M+ REV in Jan 2025, strong MEV infrastructure[1] |
While Solana's transaction volume and revenue are growing faster than Ethereum's, much of Solana's revenue spike is believed to be driven by meme-coin trading, a trend that may stall in a bear market. In contrast, Ethereum's fundamentals are less tied to speculation, providing the asset with more stability over the long term.
As the bull market advances, investors are expected to pay closer attention to the dynamic between Ethereum and Solana. The SEC could solidify Ethereum's lead by allowing staking options within an ETF, while the approval of a similar product for Solana could level the playing field. Ethereum's advantage in accessibility to traditional finance (TradFi) investors via ETF products also adds to its long-term potential.
Experts have pointed out high developer activity, total value locked (TVL), and stablecoin supply on Ethereum's network as further indicators of its strength. The surge in Solana's revenue and volume is attributed to meme-coin hype, but projects like Firedancer are designed to increase transaction throughput, indicating a focus on long-term growth as well.
In conclusion, Ethereum and Solana each offer unique advantages, with Ethereum building lasting value and infrastructure, and Solana offering immediate performance advantages. As both networks undergo anticipated upgrades throughout 2025, the competition between these two blockchains is set to intensify.
- Given the endorsement by Fidelity and the recent growth in decentralized exchange (DEX) volume and 24-hour chain fees, investing in Ethereum as a long-term blockchain with institutional credibility and improved scalability seems promising.
- Solana's exceptional network performance and economic activity, especially its consistently low fees and high transaction volume, have generated significant Real Economic Value, making it a lucrative option for those seeking short-term advantages in digital asset finance.
