Both Solana and Ethereum will thrive in the tokenization race, and neither blockchain will push the other out of the space, says Rob Hadick, general partner of Dragonfly.
“They are both Facebook” – Hadick he said CNBC’s “Squawk Box” on Wednesday asked which blockchain will gain market dominance like social media platform Facebook or fall behind like the once-popular MySpace.
Hadick said that with growing interest in tokenization and increasing economic activity on the blockchain, there is room for multiple blockchains to coexist.
“There is a lot of room in this market. If you believe that most assets will be tokenized, if you believe that a significant amount of economic activity will be conducted on-chain […] You can’t have just one blockchain,” he said.
No single blockchain can win
Hadick said that “the majority of stablecoins” are currently on Ethereum, and that is where most on-chain economic activity takes place.
However, he said Solana handles the majority of trading volume, making it “more optimized for this type of deal flow.”
There is a significant difference between the two blockchains in terms of the value of network assets. The value of Ethereum’s network assets, including stablecoins, is $183.7 billion, while the value of Solana’s network assets, which also includes stablecoins, is $15.9 billion. According to Down RWA.XYZ data.
Hadick said it’s unlikely that one blockchain will become the only blockchain because no single blockchain can “scale enough” to take on that role.
“I think we will see different use cases on different blockchains,” he said. He also admitted that there is the possibility of novel blockchains emerging and taking market share.
Crypto platforms switch and change between blockchain networks
Some crypto platforms switch between the two blockchains as business needs change.
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Fantasy sports cryptocurrency platform Sorare announced in October that it was migrating from Ethereum after six years, taking advantage of Solana’s scalability and consumer-focused user base. The company will transfer over 10 sports games and their trading cards to Solana.
Sorare CEO Nicolas Julia said he still feels confident in Ethereum, even though he called the transition a “modernization.”
Anthony Bassili, president of Coinbase Asset Management, told Cointelegraph in November that while Bitcoin (BTC) and Ether (ETH) rank first and second in the average cryptocurrency portfolio, Solana (SOL) is a potential “maybe” for the third spot.
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