Rob Haddick, general partner at Dragonfly, says Solana and Ethereum will both thrive in the tokenization race, and neither blockchain will push the other out of the field.
“Both are Facebook,” Haddick said Wednesday on CNBC's “Squawk Box” when asked which blockchain will gain market dominance like social media platform Facebook or fall back like the once-popular MySpace.
Haddick said that with growing interest in tokenization and increased on-chain economic activity, there is room for multiple blockchains to coexist.
“There is a lot of room in this market. If you believe that most assets will be tokenized, if you believe that a significant amount of economic activity will take place on-chain (…) you cannot have just one blockchain,” he said.
You can't win with a single blockchain
Haddick said that “most stablecoins” currently reside on Ethereum, which is where the majority of on-chain economic activity resides.
However, he said Solana handles most of the trading volume and is “more optimized for that type of deal flow.”
There is a large gap between the two blockchains in terms of network asset value. According to data from RWA.XYZ, Ethereum's network asset value, including stablecoins, is $183.7 billion, while Solana's network asset value, including stablecoins, is $15.9 billion.
Ethereum has the largest network asset value among blockchain networks. sauce: RWA.XYZ
Haddick said it is unlikely that one blockchain will become the only blockchain, as no single blockchain will be able to “scale enough” to play that role.
“I think you’ll see different use cases for different blockchains,” he said. He also acknowledged the potential for new blockchains to emerge and steal market share.
Crypto platform switches between blockchain networks
Some crypto platforms switch between the two blockchains as business needs change.
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Fantasy sports crypto platform Sorare announced in October that it would leverage Solana's scalability and consumer-focused user base to migrate away from Ethereum in six years. The company plans to move more than 10 sports games and their trading cards to Solana.
Sorare CEO Nicolas Julia called the move an “upgrade” but said he remains confident in Ethereum.
Anthony Basili, president of Coinbase Asset Management, told Cointelegraph in November that while Bitcoin (BTC) and Ether (ETH) occupy first and second place in the average crypto portfolio, Solana (SOL) could “possibly” be number three.
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