Solana (SOL) experienced a massive 900% increase in value last year, making it a top contender for the title of crypto’s 2023 MVP. However, while this surge provided relief after a drop to $8, its long-term potential pales in comparison to Ethereum (ETH).
Investors should not overlook Ethereum’s potential as the market’s attention is focused elsewhere. Ethereum arrived in 2015 as the first blockchain to allow developers to build custom decentralized applications through smart contracts. This paved the way for innovative uses such as non-fungible tokens (NFTs) and decentralized finance (DeFi).
However, new versions of technology emerged, including Solana in 2017. It offered faster and cheaper transactions, earning the title of Ethereum killer and becoming the fifth-most-valuable cryptocurrency with a $41 billion valuation.
Despite Solana’s hype, Ethereum remains nearly six times more valuable and supports 20 times more value across the DeFi economy. This is due to its large developer community, proven functionality, and planned upgrades that will further enhance its capabilities.
One major upgrade, EIP-41844, will lower transaction fees and increase throughput. This will level the playing field with Solana, potentially increasing Ethereum’s value as it can support more uses. This is just one of many planned upgrades that will increase security, decentralization, and streamline the network.
In the future, the DeFi economy may have multiple competitors, much like the smartphone market with Android and Apple’s iPhone. However, Ethereum is poised for significant growth, especially in the long term, with its proven track record and planned upgrades.
While Solana saw a 900% increase in 2023, Ethereum only rose by 90%, suggesting it has room for growth. During the last bull market, Ethereum rose by nearly 2,000%, reaching over $4,800. With the potential of EIP-41844 and future upgrades, Ethereum may continue to be a top performer in investors’ portfolios for years to come.
