Solana's Financial Depth: A Closer Look at the Ethereum vs Solana Debate
Raoul Pal, the founder of Real Vision, suggests that Solana may potentially surpass Ethereum in market capitalization. However, he notes that network activity alone may not settle this debate. Pal emphasizes the importance of considering capital concentration, financial activity, adoption, and token economics when comparing both networks.
Pal calculates the total value locked (TVL) per active user for both networks, with Ethereum carrying around $200,000 and Solana around $2,500. However, he argues that this calculation does not provide a complete picture of financial depth. He gives more weight to lending balances, collateral, and other financial assets, describing Ethereum as financially deeper and associating much of Solana's activity with speculation.
DefiLlama figures from October 3 show that Ethereum holds significantly more DeFi deposits and stablecoins than Solana. However, both networks hold billions of dollars across these categories. Pal notes that Solana's balances show financial activity beyond token trading, and stablecoin supply alone cannot reveal how users deploy these assets.
Visa's April stablecoin settlement update lists Ethereum and Solana among the supported networks in its pilot, establishing a financial use case beyond speculative trading. Pal also notes that TVL per user depends heavily on the measurement period and the calculation method used.