Ethereum faced challenges in late 2024 and early 2025, including a 40% price drop, as Solana surged ahead, doubling its TVL with high-speed performance and increasing developer activity.
Ethereum relies on Layer 2 solutions while Solana introduced Firedancer for high throughput, competing in scalability for retail dApps, gaming, and DePIN protocols.
Ethereum leads in DeFi and NFTs with $50 billion TVL; Solana is catching up in sectors like DePIN and NFT gaming, offering a smoother user experience.
Ethereum's fees have reduced with L2 adoption, but Solana maintains low fees and offers a simple user experience, attracting retail users and meme coin traders.