Why Solana is a better crypto investment than 2025 Ethereum

Ethereum (Encryption: ETH) And Solana (Cryptography: Sol) They are two of the most successful cryptocurrencies, both ranked in the top 10 market capitalization. They are also direct competitors. Each is a blockchain platform that allows developers to build decentralized apps (DAPPS) and launch cryptographic tokens.

Ethereum was launched five years earlier than Solana in 2015, establishing a major early lead in terms of popularity and usage. But the gap is closed. Last year, Solana prices rose 10%, while Ethereum prices fell more than 30%. Here’s why Solana is a better crypto investment now:

Ethereum has become partly a top blockchain platform due to the benefits of the first movers, but the second has also benefit. The developers of Solana were able to create a blockchain that would blow Ethereum off in terms of performance.

According to Solana’s live transaction statistics, it regularly handles more than 4,000 transactions per second (TPS). Ethereum is around 15 TPS at the time of this writing. Both blockchains use a consensus mechanism of proof to verify transactions, but Solana combines it with its own historical proof consensus mechanism. Historical Proof incorporates time stamps into the verification process, greatly improving processing speed and cost.

Solana’s average trading fee is only $0.00025, which is cheaper than most other blockchains. The median gas fee (transaction fee period) for Ethereum is $0.05, but varies depending on the type of transaction and network congestion.

Solana users are less likely to encounter network congestion, as transaction processing is much better due to the historical proof consensus mechanism. Additionally, the fees will be much lower. And based on recent numbers, cryptography enthusiasts are paying attention.

At its peak in November 2021, Ethereum won a $1.8 billion fee. Since then, it has been heading mostly downwards. Recently, he made about $140 million in January this year and $46 million in February.

Before 2024, Solana was quite behind Ethereum on this metric. However, last year it narrowed the gap, defeating Ethereum significantly in 2025, nearly $250 million in January and over $80 million in February. The Solana team has been continuously improved with new innovations, including Liquid Staking in 2024. This will allow people to bet Sol tokens, earn rewards and receive liquid staking derivatives that can be used to win additional returns.

The price indicates the amount of activity on the blockchain, so much more numbers in Solana show an increase in its popularity. It’s not even the only region where Solana has the advantage of Ethereum this year. In addition, revenues increased in January and February.

Data Source: Defilama.

I’m choosing Solana over Ethereum for my Crypto project. And there is one type of project that has taken off in particular.

Memecoin has a controversial reputation in the crypto community. Serious cryptocurrency supporters are generally seen as useless at best, and at worst they see pump and dump scams. In most cases, it is accurate.

But even if they serve little purpose, the meme coins remain popular. If appropriate, DogeCoin’s market capitalization is $35.7 billion. Thanks to the low fees, Solana has become a place to fire meme coins. The official Trump and Melania memes are two of the most well-known examples.

There is also a Solana-based platform Pump.Fun. This will allow anyone to instantly create meme coins. It requires little technical knowledge and costs around $2, which is a Sol token.

Pump.Fun is a huge success, essentially making it possible to fire meme coins as easily and cheaply as possible with Solana. Since March 1, 2024, it has generated more than $575 million in fees. And over the past two weeks, there have been trading volumes of over $2 billion.

Ethereum has firmly established itself as the second cryptocurrency behind Bitcoin (Cryptography: BTC) For years. You probably won’t lose that position anytime soon. According to a 2024 report by Electric Capital, it is currently the top blockchain platform worldwide with a share of all developers.

But at this stage, Ethereum is an inactive crypto investment. Prices have been declining, unable to process many transactions per second, and have recently reduced gasoline charges to a reasonable level.

Meanwhile, Solana is on the rise. Transactions are processed quickly and cost a small portion of what you do with Ethereum. Ethereum may have the largest share of developers, but Solana is the second and became the first blockchain for new developers in 2024. That year, 7,625 new developers explored Solana compared to 6,456 people who explored Ethereum.

Solana’s on-chain activities are also featured, as seen in its pricing numbers. The increase in activity helped Solana prices reach an all-time high in January.

Crypto prices, including Solana’s, have been pulled back since then, and this is a normal event. Cryptocurrencies are volatile, so even with quality projects it’s wise to take a careful approach to prepare for the ups and downs. Choosing the right cryptocurrency investment is also important to give your portfolio the best chance of success. Ethereum and Solana are both popular options, but Solana is making more of a long-term investment.

Consider this before purchasing stocks in Solana.

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Lyle Daly has positions in Bitcoin, Ethereum and Solana. Motley Fool has Bitcoin, Ethereum and Solana positions and is recommended. Motley Fools have a disclosure policy.

Why Solana is a better crypto investment than Ethereum in 2025 was originally issued by Motley Fool