Solana and Ethereum can coexist in the tokenization race: Dragonfly
Solana and Ethereum will both thrive in the tokenization race, and neither blockchain will push the other out of the space, said Rob Haddick, general partner at Dragonfly.
“They're both Facebook,” Haddik told CNBC's “Squawk Box” on Wednesday when asked which blockchain will see Facebook gain market dominance as a social media platform or the once-popular MySpace fall behind.
As interest in tokenization grows and onchain economic activity increases, there is room for multiple blockchains to co-exist.
“There is a lot of room in this market. If you believe that most assets will be tokenized, there will be significant economic activity on the chain. […] You can't have just one blockchain,” he said.
No single blockchain can win
According to Hadik, “most stable coins” are currently on Ethereum and this is where most of the onchain economic activity resides.
However, Solana handles the highest transaction volume, making it “more optimized for that type of transaction flow,” he said.
There is a huge gap between the two blockchains in terms of network asset value. The asset value of the Ethereum network, including stablecoins, stands at $183.7 billion, while Solana's is $15.9 billion, according to RWA.XYZ data.
Hadik says it's unlikely that any blockchain will ever be the only one, as no chain can “scale” enough to take on that role.
“I think we'll see different use cases on different blockchains,” he said. They also acknowledge that new blockchains can take market share as they emerge.
Crypto platforms are switched and exchanged between blockchain networks.
Some crypto platforms have been 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, capitalizing on Solana's expansion and consumer-focused user base. The company will move more than 10 sports games and their trading cards to Solana.
Sorere CEO Nicolas Julia called the transition an “upgrade” but said he still feels confident in Ethereum.
Anthony Basile, president of Coinbase Asset Management, told Cointelegraph in November that Bitcoin (BTC) and Ether (ETH) occupy the first and second positions in the average crypto portfolio, while Solana (SOL) is “probably” third.
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