- Last week, Solana processed more blockchain transactions than the combined total of all other cryptocurrency markets.
- After a major upgrade, the network continues to outperform Ethereum in terms of speed and transaction costs.
- Despite Solana's technical advantages, institutions like BlackRock still prefer Ethereum due to its deeper liquidity and higher trust.
What drives large institutions to launch products on one blockchain over another? As traditional finance increasingly enters the cryptocurrency space, this question has become more important than ever. Typically, institutions first focus on several core factors—transaction speed, network fees, settlement finality, and overall reliability. The underlying logic is straightforward: faster, lower-cost networks can handle higher transaction volumes more smoothly, naturally delivering a better experience for users and enterprises conducting large-value transactions.
From this perspective alone, Solana[SOL] currently appears unstoppable. According to Token Terminal data, Solana processed approximately 696 million transactions over the past week. In comparison, all other blockchains combined processed about 593 million transactions during the same period. A single network has generated more on-chain activity than all other blockchains combined, accounting for roughly 54% of total blockchain transactions. This is not a small margin—it’s a massive lead.
Solana's technical advantages over Ethereum continue to expand
Solana's growth is largely attributed to its exceptional efficiency. Transaction throughput is typically directly linked to more robust infrastructure, and Solana continues to widen its gap with Ethereum (ETH) across multiple areas. These differences are even more pronounced compared to Ethereum. Recent data from Chainspect shows that Solana’s transaction costs are nearly 100% lower than Ethereum’s, where high transaction fees have long been one of Ethereum’s biggest criticisms.
Next is settlement speed. According to reports, Solana’s recent Alpenglow upgrade reduced settlement time. Finality processing time has been shortened from approximately 12.8 seconds to around 100 to 150 milliseconds. This speed is astonishing, bringing the network close to near-instant transaction settlement. For developers and users, this responsiveness is crucial, as it creates an experience that feels less frictional than traditional blockchains and more like modern internet infrastructure. To be honest, it’s hard to understand why people have一直称 Solana 为“互联网基础设施”。的目前加密货币领域最强大的 Layer-1 竞争对手。
So why did BlackRock ultimately choose Ethereum?
Nevertheless, advantages institutions still appear cautious about fully adopting Solana for large-scale financial product issuance. BlackRock’s latest move highlights this disconnect clearly: the asset management giant recently announced plans to launch two tokenized money market funds, one of which is tied to a $6.1 billion U.S. Treasury liquidity vehicle, primarily targeting stablecoin users rather than traditional banking clients.
However, the more important story is where BlackRock chose to invest—launch product—Ethereum.
Given Solana’s higher transaction efficiency and lower transaction costs, this decision has surprised many. operational costs. Of course, this raises a larger question: despite Solana’s technological advantages, do institutions still believe its value is significantly undervalued? But for institutions, performance alone is not always decisive. Liquidity and trust are often equally important, and sometimes even more so.
Ethereum's liquidity advantage remains significant for institutional investors.
Ethereum continues to lead in total value locked (TVL) within the decentralized finance space. According to DeFiLlama, Ethereum currently controls over 50% of on-chain liquidity, while Solana accounts for only about 6.7%. Even with Solana’s rapid growth over the past year, this remains a significant gap.
For institutional investors, launching financial products worth billions of dollars requires deeper liquidity, which fosters greater... stability confidence is also crucial. Large pools of capital make it easier for buyers and sellers to enter and exit the market without causing significant disruption, and institutional investors highly value this predictability. Trust also plays a vital role. Ethereum has spent years building credibility among major investors, regulators, and financial institutions, while Solana, despite its strong technical capabilities, is still working to earn the same level of recognition from institutional investors.
Therefore, from many perspectives, Solana’s perceived undervaluation may not stem from weak infrastructure—the network’s technical performance is clearly outstanding. Instead, institutions still appear willing to pay a premium for Ethereum’s deep liquidity, mature ecosystem, and long-standing reputation in the financial world.