Solana Could Soon Outpace Ethereum
In recent months Solana Significant growth in decentralized finance has been shown (defi)department,hint Discuss its potential to match Ethereum valuation.
A new Franklin Templeton report highlights Solana’s DEFI protocol is one of the most used and highest-growing platforms in any blockchain environment.
Franklin Templeton sees Solana as Ethereum competitor
In the analysis, Franklin Templeton Highlight Solana’s Defi ecosystem is growing rapidly and potential. The report shows that its valuation may soon be able to compete with Ethereum.
Global Asset Management, which oversees $1.68 trillion assets, noted that six SOLANA-based protocols exceeded $1 billion in total value lock-in (TVL).
Solana outperformed several key indicators in the third and fourth quarters of 2024. Solana’s decentralized exchange (DEX) volume significantly outweighs Ethereum and everything Ethereum virtual machine (EVM) is based on a DEX combination.
The surge shows a significant shift in Defi activity to Solana, which challenges Ethereum’s long-standing dominance in the space. Jito (JTO) Leadership Accuses Liquid Occupancy Agreement It recently hit an all-time high of $3 billion in TVL. It is worth noting that this marks the first time that the Solana-based protocol has achieved this milestone.
Other notable agreements include Jupiter (jup)raydium(ray),chimney(kmno), marinade (month) and sanctuary coins (sacred). Overall, these protocols contribute to Solana’s growing Defi ecosystem.
Solana’s hourly active address reportedly further highlights its growing prominence, with the surge in user activity reflecting the scalability and efficiency of the network as of January 2025, making it an attractive platform for developers and investors seeking faster transactions and lower fees.
Despite impressive growth, the Franklin Templeton report notes that Solana’s Defi protocol is still underestimated compared to Ethereum. Analysis shows that although Solana’s defi tokens are traded on lower valuation multiples, they show higher growth profiles and strong fundamentals.
“Although the growth rate is significantly higher, Solana Defi valuation multiples are on average lower than its Ethereum transactions. This highlights the obvious assessment asymmetry between the two ecosystems.”
Still, Franklin Templeton said the increased activity has also led to rising market capitalization and overall ecosystem growth in Solana. According to asset managers, these differences raise potential investment opportunities as the market can be adjusted to recognize Solana’s expanding influence in the defense department.
Reflecting this optimism, Franklin Templeton proposes A place Solana etf (exchange-traded funds) with the United States for the second second. It is worth noting that the proposed ETF Includes the function of putting in. This means investors can win rewards by participating in the network verification process, the first of SOLANA-based ETFs.
Solana Rise – Can it surpass Ethereum?
While some investors are passionate about Solana’s potential, others remain skeptical. A user on X (Twitter) proposed a move to compare Solana with Ethereum and suggested a clear difference in basic robustness.
“It’s like comparing Ethereum to Las Vegas Casinos. Yes, Vegas has more bargaining chips.” Fun.
Similarly, industry analysts are cautious about assuming that Solana is expected to surpass Ethereum. Juan PellicerSenior research analysts at Intotheblock noted that Solana still faces huge obstacles despite closing the market cap gap with Ethereum.
“Although Solana may continue to grow and may challenge Ethereum in a particular wall ni, the position of Ethereum dominance in the near future remains impossible, even though the competitive environment is dynamic and evolving,” Perrikar told Beincrypto.
Specifically, Pellicer stresses that Ethereum benefits from established trust and vast trust Developer Community. According to analysts, these are the key factors in maintaining its lead in the Defi space.
He also highlighted the need for Solana to solve centralization problems and achieve balance in developer adoption. According to analysts, these people will see Solana really challenge the dominance of Ethereum.
As Solana continues to innovate and expand its biased ecosystem, its potential to obtain a comparable valuation to Ethereum becomes more reasonable.
beincrypto data show sol As of this writing, the transaction price was $149.77, up more than 5% in the past 24 hours.
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