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Ethereum Reclaims Crown From Solana: Are Ethereum Meme Coins Next To Pop?

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Ethereum vs Solana has been a hot debate since the 2021 bull run, and now, as Ethereum TVL surges, Solana’s shot at the crown is fading.

They call it Ethereum because your gains are ethereal. At least that was the case before recent financial movements, which have spotlighted significant inflows to Ethereum L2s and outflows from Solana.

Michael Nadeau, founder of The DeFi Report, provided key insights into these dynamics, highlighting both blockchains’ challenges and opportunities.

(TVL)

Solana has seen substantial inflows from other blockchains, yet a significant portion of this value has returned to Ethereum. According to Nadeau, the crux of Solana’s strategy should be drawing Total Value Locked (TVL) from Ethereum and its layer-2 networks. He remarked:

 “But the only thing that really matters for Solana is pulling TVL from Ethereum (and the L2s). Why? That’s where all the value sits today.”

Ethereum’s Long-Term Value Is Growing

This cycle hasn’t been kind to Ethereum eth-ethereum icon eth-ethereum icon Price Trading volume in 24h Last 7d price movement , and many argue that the L2 chains like Polygon, Arbitrum, and Base, which were created to scale the network, have made it too diffuse.

There’s a good reason why SOL surged fast and furious this cycle. It has everything normies want in a network: It’s inexpensive and fast, and they addressed the downing and congestion issues (ETH is nothing but congestion, slow with nasty fees), etc.

If Degen Twitter were your guide, you’d believe Ethereum is a failed project. Yet, from a technical and usability perspective, ETH is the best it’s ever been.

Despite Solana receiving $2.36 billion in inflows from Ethereum this year, over $1 billion returned to Ethereum, representing a sizable 42% of the total. This ebb and flow suggest that while Solana is gaining ground, but Ethereum remains a stronghold of value.

Ethereum vs Solana has been a hot debate since the 2021 bull run, and now as Ethereum TVL surges, Solana's shot at the crown is fading.
(Artemis)

Meanwhile, layer 2’s adoption is growing massively, and ETH DeFi is usable now thanks to low fees.

Ethereum is the backbone of what will eventually be a fully digital commercial infrastructure. I get it. It is also the most boring hold in crypto. It’s like mining iron while everybody else is mining gold or diamonds. You keep thinking about all the things that need iron, and yet you will never be as excited as the fools who get up every morning, thinking it might be the day that changes everything.

DISCOVER: How to Stack Ethereum For Long-Term Gains – Beginner’s Guide

The Current TVL Landscape For Layer-1s

With a staggering $50 billion in TVL, Ethereum isn’t just holding its ground; it’s dominating the blockchain landscape, per DefiLlama. Despite a $6 billion exodus this year, 83% of those funds have found refuge in layer-2 solutions, keeping the action within Ethereum’s own neighborhood.

Solana sol-solana icon sol-solana icon Price Trading volume in 24h Last 7d price movement , on the other hand, has lost about $55 million in TVL to emerging layer-2 networks like Base, Optimism, and Arbitrum.

Ethereum vs Solana has been a hot debate since the 2021 bull run, and now as Ethereum TVL surges, Solana's shot at the crown is fading.
(ETHUSD)

The clash for TVL and fee supremacy between Solana and Ethereum is a microcosm of the blockchain battlefield. Solana’s knack for pulling in big numbers only to watch them slip away underscores the gritty fight for network sustainability.  If people tell you Solana has officially killed Ethereum, ask them to talk to the hand.

Vitalik made a big bet with L2s; it might not pay off this cycle (or even the next), but it should eventually pay off in terms of decentralization and scalability.

DON’T MISS: These Altcoins Could Supercharge Your Portfolio in November 2024

Ethereum Might 10x, But So Will New Altcoin Crypto All-Stars

Image
(All-Stars)

While ETH and SOL are undoubtedly pioneers in the space, a new presale called Crypto All-Stars is trailblazing in the meme markets.

In its first week, Crypto All-Stars ($STARS) pulled in nearly $3 million in presale lighting the meme markets on fire.

Ethereum vs Solana has been a hot debate since the 2021 bull run, and now as Ethereum TVL surges, Solana's shot at the crown is fading.

Offering passive income via unified staking, $STARS lets Dogecoin and Pepe holders stake together and earn $STARS.

$STARS holders also will unlock triple rewards, promising unmatched returns. With a price jump from $0.00138 to $0.0013911 and another spike imminent, investors are all in on this Q3 token.

Grab hold of this exciting new presale now!

EXPLORE: 10 Best No KYC Exchanges for 2024

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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital. 99Bitcoins may receive advertising commissions for visits to a suggested operator through our affiliate links, at no added cost to you. All our recommendations follow a thorough review process.

Isaiah McCall is an ultramarathon runner and journalist for 99Bitcoins. He started at USAToday in 2019 and now has a Medium blog following of 30k+ and millions of views. Follow him at @AfroReporter

View all Posts by Isaiah Mccall

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