How Solana is eroding Ethereum's market

▲ Ethereum (ETH), Solana (SOL)/ChatGPT generated image ©

Solana (SOL) is rapidly eroding the market share of Ethereum (ETH), the second-largest cryptocurrency by market capitalization, wielding its overwhelming processing speed and low fees, and emerging as a powerful rival.

According to the cryptocurrency specialized media Watcher.Guru on May 6 (local time), Solana is surpassing Ethereum in various aspects and has established itself as a major platform for developers. The most notable difference is network performance. While Ethereum only processes 10 to 15 transactions per second, Solana easily handles thousands of transactions in the same amount of time. Coupled with much lower transaction fees, it is showcasing unique appeal in the blockchain ecosystem.

Solana is also taking the lead in memecoin issuance and the stablecoin ecosystem. The Pump.fun platform within the project has given birth to a series of mega-hit memecoin projects like Pepe (PEPE) and Bonk (BONK). Furthermore, global financial services company Western Union launched its USDPT stablecoin based on the Solana network, providing strong evidence of corporate adoption and network growth.

Solana's resilience is also remarkable in terms of price recovery. It experienced the worst crisis during the 2022 bankruptcy event when its price plummeted below $10, but since then, it has achieved a spectacular rebound, breaking new all-time highs multiple times. In contrast, Ethereum, according to CoinGecko data, recorded a new high of $4,946.05 in August 2025, but has generally struggled over the past few years.

However, Ethereum has not completely lost its status as the industry's top platform. The media noted that Ethereum still has an overwhelmingly large number of developers and maintains a solid leading position, far surpassing other competitors in terms of the scale of applications running on its network.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*