Solana and Ethereum will both thrive in the tokenization race and neither blockchain will push the other out of the space, says Dragonfly general partner Rob Hadick.
“They’re both Facebook,” Hadick told CNBC’s “Squawk Box” on Wednesday when asked which blockchain will gain market dominance like social media platform Facebook or fall behind like the once-popular MySpace.
Hadick said that with the growing interest in tokenization and increasing economic activity on the chain, there is room for the coexistence of multiple blockchains.
“There is a lot of room in this market. If you believe that most assets will be tokenized, if you believe that there will be a significant amount of economic activity on the chain […] You can’t have just one blockchain,” he said.
No blockchain can win
Hadick said that “most stablecoins” are currently on Ethereum and that is where the majority of on-chain economic activity takes place.
However, he said Solana handles the largest trading volume, making it “more optimized for those types of transaction flows.”
There is a significant gap between the two blockchains in terms of the value of network assets. The value of Ethereum’s network assets, including stablecoins, is $183.7 billion, while Solana’s, including stablecoins, is $15.9 billion, according to data from RWA.XYZ.
Ethereum has the largest network asset value among blockchain networks. Source: RWA.XYZ
Hadick said it’s unlikely that one blockchain will become the only one, because no chain can “scale big enough” to take on that role.
“I think we’re going to see different use cases on different blockchains,” he said. He also acknowledged the possibility of new blockchains emerging and capturing market share.
Crypto platforms switch and switch between blockchain networks
Some crypto platforms are switching between the two blockchains as their business needs change.
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Fantasy sports crypto platform Sorare announced in October that it would migrate from Ethereum after six years, taking advantage of Solana’s scalability and consumer-oriented user base. The company will move more than 10 sports games and their trading cards to Solana.
Sorare CEO Nicolas Julia said he still has confidence in Ethereum, even as he called the transition an “upgrade.”
Anthony Bassili, the president of Coinbase Asset Management, told Cointelegraph in November that while Bitcoin (BTC) and Ether (ETH) occupy the first and second positions in the average crypto portfolio, Solana (SOL) is a potential “maybe” for third place.
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