A recent report by Syncracy, a thesis-driven hedge fund, has revealed that Solana is now surpassing Ethereum in several key metrics, signaling a shift in the competitive landscape of blockchain technology. This analysis highlights how Solana is steadily carving out a dominant position in the crypto market and potentially eating into Ethereum’s market share.
The data presented in the report shows Solana outperforming Ethereum in metrics such as stablecoin volume, total value locked (TVL), decentralized exchange (DEX) volumes, and active addresses. Syncracy’s calculations indicate that Solana’s Real Economic Value, which includes transaction fees and MEV tips, stands at 111% of Ethereum’s. Similarly, active addresses on Solana, including those linked to Layer 2 solutions, have surged to 234% compared to Ethereum. On January 9 alone, Solana reported 5.8 million active users, significantly outpacing Ethereum’s 397,300 users.
Beyond activity levels, financial metrics reinforce Solana’s growth narrative. Token Terminal’s data shows that Solana’s fees on January 9 reached $4.544 million, surpassing Ethereum’s $3.675 million. This financial performance has led Syncracy to assert that Solana is undervalued, especially given its scalability and developer engagement. As of last year, Solana’s valuation stood at just 13% of Ethereum’s, suggesting room for significant appreciation.
Other market analysts echo this sentiment. A report from Market Vector, a subsidiary of VanEck, highlighted that Solana’s market cap was only 22% of Ethereum’s. This disparity, coupled with Solana’s superior performance metrics, has led to speculation that Solana’s price could experience substantial growth in the coming years.
Part of Solana’s recent success stems from a surge in memecoin activity. The Syncracy report points to Pump.fun, Solana’s memecoin launcher, as a major catalyst for its financial activity. The platform has generated over $390 million in revenue since its launch, making it one of the fastest-growing applications in crypto history. This phenomenon has not only driven application revenue but also showcased the blockchain’s capacity to attract innovative projects and users.
Institutional interest is another critical factor in Solana’s rise. Financial giants such as Citibank and Franklin Templeton have announced plans to integrate Solana into their services, signaling growing confidence in its infrastructure. Additionally, stablecoin activity on Solana is set to expand, with projects like the EUR CoinVertible from Société Générale and the upcoming launch of the USDS stablecoin on the blockchain.
Looking ahead, Solana’s Firedancer upgrade promises to propel the blockchain’s growth further. Developed in collaboration with Jump Crypto, the upgrade aims to enhance scalability and network stability. Although a launch date has yet to be announced, early testing through the Frankendancer version is already underway. The Firedancer upgrade is expected to solidify Solana’s position as a high-performance blockchain in 2025.
Additionally, Solana is preparing to implement SIMD-215, a new hashing system designed to optimize account verification processes. This improvement, likened to “cleaning the messy parts of a house to save time,” could further boost the blockchain’s efficiency. The launch of Solaxy, Solana’s Layer 2 chain, also promises to alleviate congestion and enhance transaction processing, with its presale already generating substantial interest.
As Solana continues to innovate and expand, its competitive edge over Ethereum becomes increasingly apparent. With a combination of technical upgrades, institutional backing, and a growing user base, Solana is poised to reshape the blockchain landscape in 2025 and beyond.