Solana Catches Up to Ethereum
This year shows a big difference between Ethereum and Solana.
- Ethereum is trading around $4,600, after reaching a new all-time high (ATH) of $4,900 in August.
- Solana, meanwhile, has struggled to keep up, even though in past years it had strong growth.
But Solana’s weaker market performance doesn’t match its technical strength. Solana can process about 2,600 transactions per second, while Ethereum handles only about 15. Solana also has very low fees and a staking yield of 6.8%, compared to Ethereum’s 3%.
Some analysts think Ethereum has slowed down because of its established position, giving Solana room to attract new investors who want speed, low costs, and diversification.
Solana’s ecosystem is also known for innovation. For example:
- “Blinks” allow transactions to be done directly through web links.
- The Saga smartphone, launched in 2023, is designed for Web3 use.
This shows Solana’s focus on user experience—not just infrastructure, but also practical applications.
Growing Institutional Adoption
In 2024, Solana gained more recognition from big financial institutions. A partnership with fintech company R3 opened doors to collaborations with major players like HSBC, Bank of America, Euroclear, and even the Monetary Authority of Singapore. These institutions are testing Solana for asset tokenization and faster settlements.
In payments, PayPal chose Solana to power its stablecoin in 2024. This move by a global company shows trust in Solana’s technology.
On the investment side, Solana exposure is growing:
- ETFs like ProShares Ultra Solana (SLON) and REX Osprey Solana + Staking (SSK) give investors access to Solana.
- The SEC is reviewing several Spot-SOL ETF applications from Fidelity, VanEck, 21Shares, and Franklin Templeton.
- Trump Media has also proposed a “Crypto Blue Chip” ETF that includes Solana.
With these developments, Solana is becoming more attractive to both retail and institutional investors. Its mix of speed, low costs, innovation, and adoption by big names sets it apart from other blockchains.
