Ethereum to Surpass Solana by 2025: Bitwise CIO Highlights Layer-2 Growth

Bitwise CIO Matt Hougan thinks Ethereum will surpass Solana by 2025 as Layer-2 networks and scalability improve.

Once slow and expensive, Ethereum’s ecosystem has evolved and Layer-2 solutions like Base, Optimism and Arbitrum have fixed the core problems.

These networks reduce transaction costs and make it developer and project friendly. Hougan says Ethereum’s ability to be institutional grade reliable and more accessible will be the reason it will beat Solana in the next few years.

And Ethereum’s support for projects like Clanker and Virtuals on the Base network shows it’s flexible. These AI driven apps show Ethereum can marry innovation with infrastructure and solidify its position as a leader in decentralized tech.

 

ETH/USD

AI and DeFi Solidify Ethereum’s Versatility

Ethereum’s infrastructure is being used for AI and DeFi applications. By using Layer-2, Ethereum becomes a platform for all use cases from decentralized apps to staking solutions.

Matt Hougan said:

“If Ethereum can keep its institutional grade while making it more user friendly, 2025 will be a great year.”

Financial analysts including VanEck expect Ethereum to hit $6,000 by 2025 with Layer-2 growth and staking. Solana is expected to hit $500 with its scalability and DeFi and NFT adoption. Despite Solana’s achievements, Hougan thinks Ethereum’s flexibility and institutional grade will win in the long run.

Solana’s Developer Growth and Competition

While Ethereum is improving in scalability and versatility, Solana is growing in developer adoption. According to Electric Capital, Solana had 83% year on year growth in monthly active developers, the first time in 8 years it has surpassed Ethereum. This shows Solana is more attractive to new projects due to lower costs and faster tx times.

But Ethereum’s Layer-2 solutions are closing the gap, so it can still keep its competitive advantage. These networks make Ethereum a hub for projects that need affordability and scalability while keeping the platform secure and decentralized.

Key Takeaways:

  • Ethereum’s Layer-2 growth boosts usability, rivaling Solana’s ease-of-use.

  • AI and DeFi projects leverage Ethereum’s infrastructure, enhancing its versatility.

  • Solana leads in developer growth but faces competition from Ethereum’s evolving ecosystem.

  • Ethereum is projected to surpass $6,000 by 2025, driven by scalability and staking.

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ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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