Ethereum may still dominate the smart contract world, but the foundations of that dominance are beginning to shake.
As the crypto landscape evolves, Solana is emerging as a credible threat, challenging Ethereum’s position across several fast-growing sectors.
The tokenization of real-world assets like bonds and equities is expected to become a trillion-dollar industry. Ethereum currently hosts the bulk of these assets, but Solana’s growing share — thanks to lightning-fast speeds and almost zero fees — suggests the tide may be turning. Unlike Ethereum, which still struggles with high gas fees despite upgrades, Solana offers seamless scalability and low-cost execution that institutions increasingly favor.
The story is similar in the world of decentralized infrastructure (DePIN). Solana’s environment enables real-time micropayments — the kind needed for services like decentralized Wi-Fi and sensor networks — something Ethereum’s current fee structure can’t support. Developers are moving where fees don’t kill the product before launch.
And as AI-driven blockchain agents become more common — bots executing rapid-fire transactions and managing data — Solana again looks like the better fit. Its architecture is optimized for speed and minimal cost, while Ethereum’s complex multi-layer setup adds latency that AI use cases can’t afford.
None of this means Ethereum is finished. But its once-unquestioned lead is eroding in markets that are likely to define crypto’s next phase. Solana doesn’t have to completely overtake Ethereum — it just needs to keep eating into growth. If it does, Ethereum holders may need to reassess whether holding long term is still the best bet.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
Source: https://coindoo.com/why-ethereums-dominance-is-facing-a-real-challenge-from-solana/