Alliance DAO founder, Qiao Wang believes Ethereum (ETH) has peaked and has no room to grow any further.
The Alliance DAO boss recently shared deep insights about Ethereum, Solana, and the changing blockchain ecosystem in a podcast discussion.
As a long-time Ethereum supporter, Wang revealed that he had held Ethereum since its very first block—meaning he was there from the very beginning of the network’s journey.
However, he made the surprising decision to sell his holdings last year after a full decade of investment.
Reflecting on this decision, Wang stated that holding an asset for ten years gives a unique perspective. Investors become deeply familiar with its strengths, weaknesses, and long-term potential. In Ethereum’s case, he began to feel that its best days of growth might be behind it.
While Ethereum remains a dominant force in the crypto space, Wang sensed that its expansion was slowing and that other blockchain networks were creating new opportunities that could be more attractive in the future.
One of those emerging competitors, according to Wang, is Solana. He described Solana as a network that has a much easier time attracting users compared to Ethereum. He suggested that user adoption is a critical factor in determining the long-term success of a blockchain, and in this area, Solana has an advantage.
However, for developers who have spent years working with Ethereum’s ecosystem, switching to Solana is not simple. Wang pointed out that Ethereum developers are used to working with the Ethereum Virtual Machine (EVM), a system that provides tools and structures for building decentralized applications (dApps).
Moving to Solana requires them to learn an entirely new set of tools, which can be a significant challenge. Despite this hurdle, he noted that many developers still see the transition as worthwhile.
Solana is often called an “Ethereum killer” because it aims to solve some of Ethereum’s biggest challenges, such as high transaction fees and slow processing speeds.
Read also: Ethereum fees dip below $1M for the first time since september, 2024
Solana offers faster transactions (up to 65,000 per second) and much lower fees compared to Ethereum, making it more attractive for users and developers. Many projects, especially in gaming, NFTs, and DeFi, have debuted/moved to Solana because of its speed and cost efficiency.
Despite its challenges, Ethereum remains the largest and most widely used smart contract platform. It has the strongest developer community, and the most established DeFi ecosystem.
In 2024, Solana (SOL) outperformed Ethereum (ETH) in several key metrics, including price performance and network growth. Solana recorded a 122% increase in its price, surpassing Ethereum’s more modest 39% rise. This shift was partly attributed to Solana’s strong community engagement and the popularity of meme coins within its ecosystem.
Also, 7,625 new developers joined Solana in the same year, compared to 6,456 developers joining Ethereum.
