Joestar
Crypto Analyst, DeFi Analytics Tools Builder, Perpetuals & Tokenization
Solana is the better token to hold than Ethereum because the Solana Foundation gets things done and works to make its token as attractive as possible, while the Ethereum Foundation mainly cares about cypherpunk ideals. Per Mert, quoted by @MarketBubble, the chain now works insanely well, and a proposal to double the disinflation rate, a burn tied to onchain activity and priority fees going to stakers change the case for holding SOL. Solana is great and moving fast. x.com
Ethereum and Solana serve different institutional users rather than competing head-on: Ethereum is nobody's layer, while Solana is one fast ecosystem for consumers, volume and heavy compute. Solana is one of the only blockchains to survive its own "death." Per @brlabsxyz, its institutional payments story now rests on specific financial operations, such as Cross River Bank and Lead Bank settling with Visa in USDC over Solana. x.com
Ethereum's deeper capital liquidity favors a 65% ETH weight, while Solana's stronger trading and consumer activity warrants 35% SOL in a long-term allocation. At ~4.8 times Solana's market cap, Ethereum holds ~8.4 times its DeFi TVL and ~9.1 times its stablecoin liquidity. Solana leads in chain fees, app revenue and DEX volume, but app revenue need not accrue to SOL. Sustained growth in Solana's stablecoins, TVL and revenue could change the weights. x.com
Solana looks like last cycle's Ether, a laggard among the majors, because its inflation keeps diluting holders. Emissions run about $5 million a day at current prices and rise as price climbs, and even with the new proposals SOL would remain inflationary. Growth in onchain activity does not accrue value to the token, and SOL was the worst-performing major even as ETH moved up. Any upside from the proposals passing is a short-term trade to sell into. x.com x.com
Solana is harder to fade because StonkFun's launchpad generated over $20 million in revenue in the last 30 days. SOL price action should follow. x.com
Ethereum's strong ecosystem is not translating into enough ETH value capture to support significant appreciation unless that changes. The Ethereum Foundation selling ETH again is frustrating; buybacks and stronger incentives for L2s to accumulate and buy back ETH could improve the token's economics. Fundstrat, which owns roughly 5% of the supply, has a huge opportunity to push for better value capture. x.com x.com
Pump.fun has been parasitic to Solana, selling $834 million of SOL over its lifespan, while Fomo and Robinhood remain accretive to Ethereum. Selling the tokens isn't wrong, just parasitic, though without Pump.fun Solana would arguably be even less desirable. x.com x.com
Live Alpenglow speed and capacity help Solana lead Ethereum in usage and compete for financial activity. Measured slots are 211ms versus 12-second blocks (57x); theoretical basic-transfer capacity tops 65,000 TPS versus 238 (275x), and an initial finality reading is 202ms versus 12.8 minutes (3,800x). Solana has about 1,700 successful TPS versus Ethereum's 23 total TPS (75x). Spot and perp exchanges need that speed and capacity, which Solana combines with high decentralization. x.com x.com
Solana's developer experience should help it win the next cycle, because the chain with the most developers wins. The Anchor framework made writing Solana programs accessible to web developers, documentation has improved massively, and hackathons consistently draw thousands of builders. Developers go where building is easiest, and right now that is Solana. x.com
Pump.fun monetizes by selling SOL to buy PUMP, favoring PUMP over Solana's native token. Over the long term, the two should flip, primarily because SOL is expected to fall to $12. x.com
Ethereum's ETF outflows look especially troubling relative to other major crypto assets. Weekly ETH ETF outflows of $320 million exceeded Bitcoin's $228 million and Solana's $25 million combined, per Ted Pillows. x.com
