Is the Next Decade Solana's?…Will Ethereum's Dominance Be Shaken?

▲ Solana (SOL) ©

While numerous Layer 1s are being discussed as candidates to threaten Ethereum's dominance, an assessment suggests that currently, only Solana is emerging as a significant alternative in the market.

According to the investment media outlet The Motley Fool on March 27 (local time), with the cryptocurrency market correction in 2026, major Layer 1 projects experienced significant declines across the board, with Ethereum (ETH) falling over 20%, Solana (SOL) 27%, Cardano (ADA) 21%, and Avalanche (AVAX) 22% respectively. The outlet pointed out that in this correction phase, investors are grappling with the choice between maintaining Ethereum and moving to competing chains.

Among them, Solana was evaluated as the most promising competitor. With a market capitalization of approximately $50 billion, Solana is rapidly expanding its influence and growing its presence in the DeFi sector. It has already surpassed Ethereum in monthly decentralized exchange (DEX) trading volume and ranks second after Ethereum in terms of Total Value Locked (TVL). Furthermore, real-world payment and financial infrastructure expansion continues, with Western Union launching a Solana-based dollar stablecoin.

The growth rate of its ecosystem is also noteworthy. According to a 21Shares report, the Solana ecosystem generated approximately $3 billion in revenue over the past 12 months. The outlet assessed that Solana is rapidly evolving from a meme coin-centric network into a practical financial platform. In particular, the current price of approximately $89 is about a 70% discount compared to its peak price of $294 in January 2025, suggesting that it is undervalued relative to its growth.

Conversely, skeptical views were presented regarding Cardano and Avalanche. Avalanche has fallen 94% from its 2021 peak, and Cardano 92%, indicating a significant weakening of their competitiveness compared to past expectations. The outlet analyzed that the once numerous competitive landscape against Ethereum has now been reshaped into a 'duopoly' between Ethereum and Solana.

In conclusion, the outlet is weighting Solana heavily from a long-term portfolio perspective. It argues that if Ethereum was the core Layer 1 for the past decade, Solana has the potential to take that position for the next 10 years. Considering its rapid growth and DeFi scalability, Solana is assessed to show higher growth potential in the current market environment.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*