Both Solana and Ethereum will reach the race to tokenization and neither blockchain will displace the opposite from the market, says Rob Hadick, general partner at Dragonfly.
“They're each 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 just like the once-popular MySpace.
Hadick said that with growing interest in tokenization and increasing on-chain economic activity, there’s room for multiple blockchains to coexist.
“There is a whole lot of scope on this market. If you think that almost all assets can be tokenized, in the event you consider that there can be a major amount of economic activity on-chain.” […] “You can’t just have one blockchain,” he said.
No single blockchain can win
Hadick said that “most stablecoins” are currently on Ethereum and that’s where nearly all of on-chain economic activity occurs.
However, he said that Solana handles probably the most trading volume and is subsequently “more optimized for this kind of transaction flow.”
There is a major gap between the 2 blockchains by way of network value. According to RWA.XYZ data, Ethereum's network asset value, including stablecoins, is at $183.7 billion, while Solana's, also including stablecoins, is at $15.9 billion.
Ethereum has the most important network value amongst blockchain networks. Source: RWA.XYZ
Hadick said it’s unlikely that one blockchain can be the just one, as no single chain can “scale large enough” to tackle this role.
“I feel we’ll see different use cases on different blockchains,” he said. He also acknowledged the likelihood that latest blockchains could emerge and capture market share.
Crypto platforms switch and switch between blockchain networks
Some crypto platforms have switched between the 2 blockchains as their business needs have modified.
Fantasy sports crypto platform Sorare announced in October that it might migrate from Ethereum after six years, benefiting from Solana's scalability and consumer-focused user base. The company will move over 10 sports games and their trading cards to Solana.
Sorare CEO Nicolas Julia said he was still bullish on Ethereum, at the same time as he called the transition an “upgrade.”
Anthony Bassili, president of Coinbase Asset Management, told Cointelegraph in November that while Bitcoin (BTC) and Ether (ETH) occupy the primary and second spots in the typical crypto portfolio, Solana (SOL) is a possible “perhaps” for third place.
