Both Ethereum (ETH) and Solana (SOL) are proof-of-stake blockchains with smart contract capability. Ethereum is known for its vast ecosystem while Solana is popular by developers and DeFi users for its fast transaction speeds and efficient throughput.
Written by: Mike Martin | Updated December 19, 2023
Reviewed by: Ryan Grace
Fact checked by: Laurence Willows
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🍒 tasty takeaways
While Ethereum (ETH) and Solana (SOL) are the leading blockchains for NFTs, Bitcoin ordinals have recently surged in popularity, momentarily taking the top spot.
OpenSea is the largest all-in-one NFT marketplace, but Blur has dethroned it as the largest NFT platform by trading volume, although it focuses on Ethereum NFTs only.
Previous leaders, such as Rarible and SuperRare, have lost momentum, while Gemini’s Nifty Gateway is used only for curated NFT art.
- Magic Eden and Tensor are the largest Solana NFT marketplaces, while UniSat is the go-to platform to trade and store Bitcoin NFTs.
What is Ethereum (ETH)?
- Token: ether (ETH)
- Market Cap: $260 billion
- Total-Value Locked: $31.6 billion
Ethereum is an open-source Proof of Stake (PoS) blockchain platform that leverages the power of smart contract technology. Unlike Bitcoin, the Ethereum network can store transactions and code within its blockchain. This feature enables the deployment and operation of decentralized applications directly on the blockchain.
Like all decentralized blockchain technologies, the Ethereum network is secured cryptographically. This security makes the Ethereum peer-to-peer blockchain immutable, which means that once a transaction goes into a block, it can never be altered.
Ether (ETH) serves as the native digital currency of the Ethereum network, acting as its primary medium of exchange. Ether ranks as the second-largest cryptocurrency by market capitalization, trailing only behind bitcoin (BTC).
What is Solana (SOL)?
- Token: solana (SOL)
- Market Cap: $31 billion
- Total-Value Locked: $2 billion
Solana was launched in 2020 by Anatoly Yakovenko. This blockchain operates with a Proof of Stake (PoS) mechanism, similar to Ethereum, but with greater scalability and speed. This makes it more efficient and flexible than Ethereum’s network.
Solana showcases high performance, processing up to 65,000 transactions per second (tps) in tests. This exceeds Ethereum’s capacity. Additionally, transaction costs on Solana are very low, averaging $0.00025.
Like Ethereum. Solana supports decentralized finance (DeFi) and Non-Fungible Tokens (NFTs). Solana, however, has much lower adaptability than the Ethereum ecosystem, which is a leader in dApps.
The native medium of exchange for Solana is SOL. Participants can earn rewards by staking their SOL coins.
Solana vs Ethereum: Overview
| Solana (SOL) | Ethereum (ETH) | |
|---|---|---|
| Overview | A blockchain designed for enhanced scalability and speed, focusing on higher transaction throughput. | The original smart contract blockchain that significantly expanded the blockchain industry's scope. |
| Primary Characteristics | Emphasizes a unique, layered consensus mechanism to eliminate bottlenecks. | Introduced smart contracts, greatly expanding blockchain functionalities. |
| Historical Development | Initiated in 2017, launched in 2020, focusing on eliminating Ethereum's limitations. | Launched in 2015 by Vitalik Buterin. |
| Main Objective | Aims to facilitate advanced, scalable Dapps with high responsiveness. | Seeks to offer a secure and flexible environment for Dapp development. |