Helius CEO explains why SOL is considered superior

CEO of Helius Labs compares Ethereum and Solana

In a recent series of posts on X (formerly Twitter), Mert Mumtaz, CEO of Helius Labs, shared his thoughts on the ongoing comparisons between Ethereum and Solana, two leading Layer 1 (L1) blockchains in the crypto space.

Mumtaz highlighted several performance aspects where Solana has shown superiority over Ethereum. He emphasized that Solana has exceeded 700 user TPS regularly in the past week, while Ethereum only does 12 TPS, representing a 60x difference.

Mumtaz further pointed out the significant disparity in transaction finality speeds, with SOL achieving approximately 400 milliseconds compared to Ethereum’s roughly 15 minutes, which represents a 2,250x difference. He also highlighted the contrast in average transaction fees, where Solana averages $0.00025, substantially lower than Ethereum’s range of $1.5 to $20.

While acknowledging Ethereum’s higher level of decentralization, Mumtaz questioned the practical impact of this difference beyond a certain threshold. He also remarked on the importance of balancing decentralization with performance and accessibility, suggesting that extreme skewing towards one aspect might not be ideal.

Mumtaz also speculated on the future of crypto activity, suggesting that even in an optimistic scenario, a combination of SOL with L2s might be the ideal solution: “So if you assume an overly optimistic future for crypto activity such that it pushes beyond the limits of a single L1 with Moore’s law or all L2s combined, then the ideal solution would still approximate something like Solana + L2s.”

Solana’s Growing Prominence in DeFi

Joe McCann, CEO and CIO of Asymmetric, further contributed to the discussion by highlighting data from Galaxy Digital that emphasizes Solana’s growing prominence in the decentralized finance (DeFi) sector. McCann pointed out, “The number of Solana DeFi users interacting with 10+ smart contracts (programs) daily is at a year-to-date high, representing 1.15% of all active DeFi addresses.”

This statistic places SOL significantly ahead of Ethereum and other Layer 1 solutions in terms of daily active DeFi interactions. He noted that this represents an 11.5x increase over Ethereum and even greater multiples over other competitors.

Cathie Wood Acknowledges SOL

In a recent interview with CNBC Squawk Box, prominent investor Cathie Wood discussed the evolving landscape of blockchain infrastructure. While acknowledging Ethereum’s status as the leading smart contract and decentralized finance network, Wood also recognized SOL’s growing significance.

Wood explained, “Solana is doing a really good job. I mean, if you look at Ether, it was faster and cheaper than Bitcoin back in the day. That is how we got Ether. Solana is even faster and cost-effective than Ether.”

She emphasized the importance of infrastructure plays in the blockchain space, hinting at SOL’s potential role in the development of Web3 and digital assets, including the implementation of online property rights.

Her comments reflect a broader industry perspective that, while Ethereum currently holds a dominant position, Solana is gaining traction due to their enhanced performance characteristics and cost efficiency.

At press time, SOL traded at $64.30.

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J-S Tremblay
About the author - J-S Tremblay

I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...

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