Both Solana and Ethereum will achieve 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 may be room for multiple blockchains to coexist.
“There is a number of scope on this market. If you think that the majority assets will likely be tokenized, in case you consider that there will likely 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 the most important trading volume and is subsequently “more optimized for this sort 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 assets, including stablecoins, are at $183.7 billion, while Solana's 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 will likely be the just one, as no single chain can “scale large enough” to tackle this role.
“I believe we are going to see different use cases on different blockchains,” he said. He also acknowledged the likelihood that recent 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, whilst 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.
