Solana vs Ethereum: Which Blockchain is Better?
The comparison Solana vs Ethereum is one of the most debated topics within the blockchain world. Both networks are among the largest smart contract platforms and support thousands of decentralised applications (dApps), DeFi (decentralised finance), and NFTs (non-fungible tokens). Yet, they differ significantly in technology, speed, costs, and philosophy.
In this article, you will read about the main similarities and differences between
Solana (SOL) and
Ethereum (ETH), what their strengths and weaknesses are, and in which situations one network is a better fit than the other.
In Summary
Ethereum has the largest and most mature ecosystem, with thousands of dApps, NFTs, and DeFi protocols.
Solana offers extremely fast and cheap transactions, ideal for scalable applications such as games and NFTs.
Ethereum uses the Proof of Stake (PoS) consensus mechanism; Solana combines Proof of History (PoH) with PoS for higher speed.
Transaction fees are much lower on Solana than on Ethereum.
Decentralisation and stability are generally higher on Ethereum, while Solana prioritises efficiency and speed.
The choice between SOL and ETH depends on your intended use: speed and low costs, or security and ecosystem size.
What are Solana and Ethereum?
Ethereum in brief
Ethereum was launched in 2015 as the first blockchain to introduce smart contracts, which are programmable contracts that execute automatically. The network has since built an unparalleled ecosystem with thousands of dApps, NFT platforms, and DeFi protocols.
In 2022, Ethereum transitioned from Proof of Work (PoW) to Proof of Stake (PoS), making it more energy-efficient and scalable. This upgrade, known as The Merge, marked a significant step towards sustainability.
Solana in brief
Solana was launched in 2020 by Solana Labs and is known for its impressive transaction speed. Thanks to the innovative combination of Proof of History (PoH) and Proof of Stake (PoS), Solana can process thousands of transactions per second with minimal costs.
Solana focuses on fast, scalable applications and is widely used for NFTs, gaming, and real-time dApps.
Solana vs Ethereum: The Key Differences
Both Solana and Ethereum are designed to achieve the same goals—supporting decentralised applications, smart contracts, and an open financial ecosystem—but they do so in entirely different ways. These differences are deeply rooted in their technology, scalability, and network philosophy.
Consensus Mechanisms: PoS vs PoH
Ethereum uses Proof of Stake, where validators create new blocks based on their staked ETH. This system is energy-efficient and secure, but limited in speed.
Solana uses a hybrid model: Proof of History (PoH) orders events based on timestamps, while Proof of Stake ensures validation. This makes the network much faster, but also slightly more complex.
Transaction Speed and Throughput
Transaction speed differs between the two networks. Ethereum processes approximately 15–30 transactions per second (TPS) on the base layer, depending on network activity. Solana, conversely, can process thousands of TPS thanks to the PoH mechanism. Solana‘s higher speed makes it suitable for applications that require many transactions per second, such as blockchain games or high-frequency trading.
Costs and Gas Fees
Transaction costs, also known as gas fees, vary greatly between the two networks. On Ethereum, gas fees can range from a few tens of pence to several pounds, depending on network congestion. On Solana, transaction costs are typically less than one pence per transaction. This difference makes Solana appealing for applications where cost management is crucial.
Network Congestion and Stability
Ethereum is known for its stability but occasionally experiences network congestion during peak traffic. Solana, on the other hand, has had temporary network outages in the past, including in 2022 and 2023, which raised questions about reliability under high load.
Both networks continue to actively work on solutions: Ethereum via Layer-2 solutions (such as Optimism and Arbitrum), and Solana via optimisations in its validator architecture.
Programming Languages and Smart Contract Capabilities
Ethereum uses Solidity and the Ethereum Virtual Machine (EVM), which makes it straightforward for developers to build smart contracts.
Solana uses Rust and C, which are powerful, more performance-oriented programming languages but have a steeper learning curve.
Use Cases for SOL and ETH
ETH is primarily used for DeFi, NFTs, DAOs, and other complex applications.
SOL is used in NFT marketplaces, games, DeFi apps, and payment networks that require speed.
Ecosystems of Solana and Ethereum
The strength of a blockchain lies not just in its technology, but especially in what is built on it. Ecosystems determine how many users, developers, and projects a network attracts. Both Solana and Ethereum have generated thousands of dApps, NFT platforms, and DeFi protocols, but the scale, maturity, and focus differ significantly.
Ethereum boasts the oldest and largest ecosystem, where many leading projects and standards originated. Solana is younger but growing rapidly thanks to its low costs and high transaction speed. Together, they represent the two most important innovation centres within the Web3 world.
Overview of dApps, DeFi, and NFT Platforms
Ethereum: leading DeFi protocols such as Uniswap, Aave, Curve, and Lido run on it. NFT marketplaces like OpenSea originated on Ethereum.
Solana: popular dApps include Jupiter, Magic Eden, Tensor, and Raydium. Solana is home to many NFT projects and memecoins.
| Category | Ethereum | Solana |
| DeFi | Uniswap, Aave, Lido, Curve | Raydium, Orca, MarginFi |
| NFT | OpenSea, Blur | Magic Eden, Tensor |
| Gaming | Illuvium | Star Atlas, StepN |
| Memecoins | Pepe, Shiba Inu | Bonk, Dogwifhat |
Memecoins on Solana vs Ethereum
Memecoins such as Bonk (BONK) and Dogwifhat (WIF) gave Solana an extra boost in 2024, particularly due to their low transaction costs and fast liquidity. Ethereum remains the destination for older, more established memecoins.
TVL Comparison (Total Value Locked)
The Total Value Locked (TVL) indicates how much value is held in DeFi protocols.
Ethereum: well over 60 billion USD (source: DefiLlama, Q4 2024).
Solana: around 5–10 billion USD and rising.
Although Ethereum still has the largest TVL, Solana is growing faster in relative terms.
Developer Community and Tooling
Ethereum has the largest developer community in the blockchain world, with extensive documentation, libraries, and support. Solana, however, is growing rapidly thanks to tools like Anchor and Solana Playground.
Security and Decentralisation
When evaluating blockchains, security and decentralisation play a central role. While speed and low costs are often prioritised, these two factors determine the long-term trust in a network. A well-secured and decentralised network reduces the risk of manipulation or outages and increases resilience against attacks or technical errors.
Both Ethereum and Solana have their own approach to this balance. Ethereum emphasises the maximum distribution of validators and network security, while Solana focuses on performance and efficiency.
Solana's Historical Network Outages
Solana has experienced network outages in the past, including in 2022 and 2023, caused by overload. Since then, the infrastructure has been improved, and updates have been implemented to increase stability.
Comparison of Decentralisation Levels
Ethereum has thousands of independent validators spread across the globe, ensuring strong decentralisation. Solana has fewer validators but higher hardware requirements. This makes the network faster, but less distributed.
Investment Perspective
In addition to the technological differences between Solana and Ethereum, many users also look at their position within the market. The investment perspective helps to understand how both networks are developing economically and strategically, without implying that one is better or safer than the other.
Market Performance of ETH vs SOL
Both tokens have shown strong price performance since their launch, but with different volatility patterns. ETH is often seen as the more stable option with institutional adoption, while SOL experiences rapid growth phases thanks to technological innovations.
Please note: this is not financial advice, but a factual comparison of market dynamics.
| Characteristic | Ethereum | Solana |
| Launch | 2015 | 2020 |
| Consensus | Proof of Stake | Proof of History Proof of Stake |
| Speed (TPS) | ± 30 | > 3,000 |
| Avg. Transaction Costs | > €1.00 | < €0.01 |
| TVL (Q4 2024) | ~60 billion USD | ~8 billion USD |
| Programming Language | Solidity | Rust, C |
| NFT & DeFi | Largest Ecosystem | Rapid Growth |
| Decentralisation | High | Medium |
| Stability | Very Stable | Improving |
| Energy Consumption | Low (after The Merge) | Low | |
Which Should I Choose: Solana or Ethereum?
The choice between Solana and Ethereum heavily depends on what you want to do with blockchain technology. Each network has unique features, use cases, and technical advantages. Rather than one clear winner, the two complement each other in an increasingly diverse ecosystem.
For Beginners
Ethereum has been active since 2015 and therefore has the largest learning ecosystem within the blockchain world. There is an abundance of documentation, videos, tutorials, and community support. Many wallets, exchanges, and DeFi platforms are standardly compatible with Ethereum or Layer-2 networks such as Arbitrum and Optimism.
For those just starting to explore smart contracts or NFTs, Ethereum is often the starting point because the ecosystem is widely supported, and developers are active globally.
Solana is newer but is rapidly gaining ground. The learning curve is slightly steeper due to its technical structure (PoH PoS) and the use of programming languages like Rust, but thanks to recent community initiatives, the platform is becoming increasingly accessible. Many Solana dApps now offer user-friendly interfaces and fast onboarding via mobile wallets like Phantom.
For Traders
Traders often look at speed, costs, and liquidity. Solana excels here due to its extremely low transaction costs and high processing speed. Orders can be executed virtually instantaneously, which is beneficial for intensive trading strategies and arbitrage between markets.
Ethereum, in turn, offers the largest range of DEXs (decentralised exchanges) and liquidity protocols. Popular trading platforms such as Uniswap and Curve run on Ethereum and attract billions in daily trading volume. Thanks to the transition to Proof of Stake and Layer-2 solutions, transactions have also become more efficient there, although costs are generally higher than on Solana.
For NFT Users
NFTs (non-fungible tokens) have developed into an important part of both ecosystems, but with different focuses.
Ethereum is the historical home of NFTs. Well-known collections such as Bored Ape Yacht Club and CryptoPunks originated here. Due to its broad recognition within the market, Ethereum is often seen as the standard for NFT infrastructure, with the largest range of marketplaces and the strongest interoperability between platforms.
Solana, conversely, has made NFTs more accessible through low transaction costs and fast confirmation times. This makes minting and trading NFTs more straightforward. New artists and gaming projects often choose Solana for its ease of use and cost advantage. NFT marketplaces such as Magic Eden have firmly established the platform.
In summary: Ethereum offers reach and reputation; Solana offers speed and scale.
For DeFi Users
DeFi (decentralised finance) runs on both networks, but at different stages of maturity.
Ethereum still forms the core of the DeFi world. Protocols such as Aave, Compound, and Lido manage billions in liquidity. Thanks to the EVM standard, developers can quickly build new applications or combine existing DeFi strategies.
Solana has a smaller but fast-growing DeFi ecosystem. Platforms such as Raydium and MarginFi are experimenting with new forms of liquidity and interest optimisation, often with much lower costs and instantaneous transactions. Due to the high speed, complex strategies, such as automated yield strategies, are more feasible without delay.
Both networks are continuously evolving. Ethereum remains the established infrastructure for major protocols, while Solana brings innovation and scalability to the forefront.
For Long-Term Holders
Both Ethereum (ETH) and Solana (SOL) have active development communities, a clear long-term roadmap, and a strong focus on sustainability.
Ethereum is working on further scalability via Danksharding and improved Layer-2 integration, allowing the network to eventually support millions of users without high costs.
Solana continues to invest in stability and validator technology, aiming to make the network more resilient to peak loads. Furthermore, the ecosystem of dApps, wallets, and bridges is steadily growing.
Both blockchains demonstrate technical resilience and a large engaged community. Their future is primarily determined by adoption, ease of use, and the speed at which developers continue to build new applications.
Should I Buy Solana or Ethereum?
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Frequently Asked Questions About Solana and Ethereum
Can Solana reach 1000 euros?
That is uncertain and depends on adoption, demand, and market developments. There is no guarantee that Solana will ever reach that value.
Does Ethereum still have a future?
Yes, Ethereum continues to actively develop with updates such as Danksharding and Layer-2 integrations, which further improve scalability.
Which coin is the Ethereum killer?
No single blockchain has fully “replaced” Ethereum. Solana, Avalanche, and other networks do pose strong competition in specific areas.
Is Solana better than Ethereum?
That depends on your priorities: speed and low costs point to Solana, stability and ecosystem size to Ethereum.
Is the Solana blockchain cheaper than Ethereum?
Yes. Average transaction costs on Solana are well over 100 times lower than on Ethereum.