As a seasoned researcher with years of experience in the blockchain industry, I have witnessed the dynamic evolution of Ethereum and its competitors. In my professional journey, I have come to appreciate the unique strengths and weaknesses of each platform.
Despite scalability and high gas fees facing Ethereum, the founder of EigenLayer, a liquidity restaking platform, insists the network is superior, especially against Solana. Solana is the third most valuable smart contracts platform, trailing Ethereum and the BNB Chain. Over the years since launching, it has been gulping up more market share from Ethereum, cementing its position.
Is Ethereum Superior To Solana?
In a recent post on platform X, Sreeram Kannan, founder of EigenLayer, contends that Solana places greater emphasis on ensuring quick response times (low latency) and synchronizing nodes worldwide rather than focusing on other key aspects.
From my perspective as an analyst, while Bitcoin leans towards scarcity and autonomy, Ethereum has opted for a distinct path, prioritizing stability and decentralization. In my opinion, this makes Ethereum’s role as the first smart contracts platform potentially more robust than its counterpart. As of now, EigenLayer, on Ethereum, is managing assets valued at over $12 billion, as reported by DeFiLlama.
While Kannan admits Solana’s effectiveness, its creator still points out certain limitations as they work on constructing a global state machine. First among these concerns is the trade-off between the blockchain’s programmability and verifiability.
Currently, the team at EigenLayer believes that Ethereum is thriving, particularly when it comes to performance. This growth can be attributed to the prosperity of rollup solutions and their widespread adoption. These off-chain methods offer immediate verification and are faster than typical web2 applications.
Simultaneously, Ethereum’s programmable nature allows for additional features such as the decentralized verification of various tasks, thanks to EigenLayer. Consequently, this programmability at scale is what Kannan refers to as the foundation for liquidity restaking platforms.
Layer-2 Platforms Thriving: Why Is ETH Struggling?
Mustafa Al-Bassam, one of Celestia’s co-founders, acknowledges the value Ethereum provides and finds certain features lacking or underdeveloped in other networks. In a post on X, he expressed his view that Ethereum, being the first smart contracts platform, is often overlooked and undervalued.
To be more specific, the co-founder praised the flourishing rollup network on Ethereum, stating it is “definitely the biggest and most prosperous.” According to L2Beat data as of September 30, the layer-2 ecosystem in Ethereum handles over $38 billion, with Arbitrum and Optimism being some of the largest platforms.
While platforms like Base and other Ethereum layer-2 solutions are experiencing increased activity, Ethereum’s native currency, ETH, is finding it hard to gather pace. The daily chart indicates that bulls have not managed to push above the $2,800 mark yet, but there remains support at $2,400.
Decreasing positive momentum in some areas has partially been attributed to the increasing use of secondary scaling solutions, which have led to inflation within the network as more activities shift away from the main chain. To further reduce costs for these off-chain transactions, improvements like Dencun have been implemented. On the other hand, Ultra Sound Money is seeing less ETH being burned compared to before.
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2024-09-30 20:46