TLDR

  • Dragonfly VC’s Rob Hadick believes both Ethereum and Solana have space to grow in the tokenization market.
  • Ethereum leads in stablecoin usage, while Solana handles more trading volume.
  • Solana’s scalability is drawing businesses like Sorare to move from Ethereum.
  • Dragonfly VC says both blockchains will thrive as distinct use cases emerge.

Competition for blockchain leadership in the tokenization sector is intensifying, with two major players—Solana and Ethereum—at the forefront. Even amid this rivalry, Rob Hadick, a general partner at Dragonfly VC, thinks both blockchains can coexist and succeed in the tokenization market. This view comes as interest in asset tokenization and expanding on-chain economic activity grows.

Space for Multiple Blockchains in Tokenization

Hadick argues there is ample room for both Ethereum and Solana in the evolving tokenization landscape. He emphasized that, just as Facebook and MySpace coexisted during social media’s rise, both blockchains can play vital roles. “If you believe that most assets are going to be tokenized and that on-chain economic activity will increase significantly, you can’t just have one blockchain,” Hadick told CNBC’s “Squawk Box” in an interview.

The surge in tokenization has sparked interest in using blockchain for a broader range of applications, from stablecoins to NFTs and beyond. But Hadick noted that a single blockchain dominating the market is unlikely due to the complexity and scale required. Instead, he sees multiple blockchains carving out niche roles across different sectors.

Ethereum’s Leadership and Solana’s Volume Strength

Ethereum currently leads the blockchain industry in stablecoin issuance and overall on-chain economic activity. Data from RWA.XYZ shows Ethereum’s network asset value—including stablecoins—reaches an impressive $183.7 billion. This dominance stems largely from its established ecosystem and the trust it has built over time.

However, Solana has positioned itself as a blockchain optimized for high-volume transactions, making it an attractive choice for platforms focused on trading and scalability. Solana’s network asset value stands at $15.9 billion—a significant gap from Ethereum, but still a notable achievement.

“Solana handles the most trading volume, making it more optimized for that type of transaction flow,” Hadick explained, highlighting Solana’s strengths in speed and cost-efficiency.

Businesses Migrating Between Blockchains

The shift of businesses from Ethereum to Solana underscores the growing appeal of Solana’s faster transaction speeds and lower fees. A prominent example is fantasy sports platform Sorare, which announced in October it would move its operations to Solana after six years on Ethereum.

Despite the move, Sorare CEO Nicolas Julia expressed confidence in Ethereum’s long-term potential, calling the switch to Solana an “upgrade” that leverages Solana’s scalability and user-friendly features.

This trend reflects a broader pattern of platforms reevaluating their blockchain needs as they scale. While Ethereum remains the dominant choice for many businesses, Solana’s ability to handle high transaction volumes is attracting new users and use cases—especially in industries where efficiency is key.

The Future of Tokenization and Blockchain Competition

Hadick’s comments suggest the future of tokenization will likely see Ethereum and Solana evolve side by side, serving different needs within the blockchain ecosystem. As Hadick noted, no single blockchain can scale to dominate every use case—a reality that opens the door for newer blockchains to emerge and reshape the competitive landscape.

While Solana and Ethereum currently excel in different areas, they share a common vision of a decentralized, tokenized economy. With ongoing advancements in blockchain technology and growing interest from businesses and investors, the tokenization race remains open to multiple players.

As the space matures, more blockchains are likely to enter the market, further diversifying the landscape. However, Solana and Ethereum are expected to remain at the forefront—each playing a unique role in the tokenization revolution.