Despite the scalability and high gas fees faced by Ethereum, the founder of EigenLayer, a liquidity restoration platform, insists the network is superior, especially against Solana. Solana is the third most valuable smart contract platform behind Ethereum and the BNB network. Over the years since its launch, it has gained more and more market share from Ethereum, consolidating its position.
Is Ethereum superior to Solana?
While Solana’s prominence is evident, Sreeram Kannan, founder of EigenLayer, argued in a post on X that Solana prioritizes low latency and global node synchronization over other core features.
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On the other hand, Ethereum has taken a different approach, emphasizing the need for stability and decentralization. Therefore, in Kannan’s opinion, the first smart contract platform offers a more comprehensive solution than its competitor. EigenLayer currently manages more than $12 billion in assets on Ethereum, according to DeFiLlama.
While Kannan recognizes Solana’s efficiency, the founder identifies some limitations now that the platform is building a global state machine. At the top of the list is the sacrifice of blockchain programmability and verifiability.
Meanwhile, the EigenLayer leader believes that Ethereum is excellent, especially in performance, thanks in part to the success of rollups and the resulting rampant adoption. This off-chain solution provides instant confirmation and has better performance than web2 applications.
At the same time, Ethereum is programmable, allowing EigenLayer to add more features, such as arbitrary decentralization of verifiable tasks. As a result, the liquidity reestablishment platform, Kannan adds, has enabled cloud-scale programmability.
Tier 2 platforms thriving: Why is ETH struggling?
Celestia co-founder Mustafa Al-Bassam also thanks what Ethereum brings to the table that is missing or underdeveloped in other networks. In a post on X, Al-Bassam said the first smart contract platform is “underrated.”
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Specifically, the co-founder praised the thriving rollup ecosystem on Ethereum, saying it is “by far the largest and most successful.” As of September 30, data from L2Beat shows that the layer 2 ecosystem on Ethereum manages more than $38 billion, with Arbitrum and Base among the largest platforms.
Same as Base and others Ethereum layer 2 platforms giveaway activity, ETH, the native currency, is struggling to gain momentum. The daily chart shows bulls are yet to break above $2,800, although support remains at $2,400.
The decrease in upward momentum has been partially attributed to the proliferation of Layer 2 scaling solutions. The network becomes inflationary as more activity is redirected off-chain and improvements like Dencun are enabled to make Layer 2 transactions even more cockroaches. Looking at Ultra Sound Moneyless ETH are not being burned.
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