Bitwise’s CIO Matt Hougan stated that innovations within the Ethereum 
$3,691 ecosystem could enable the platform to outpace its competitor, Solana 
$210, by 2025. He noted that the perception of Ethereum as slow and costly is changing thanks to Layer-2 technologies, which enhance Ethereum’s scalability and usability.
Layer-2 Technology Supports Ethereum
Layer-2 networks within the Ethereum ecosystem are increasing the platform’s appeal to both developers and users. Hougan expressed that these technologies are solving Ethereum’s scalability issues, making it competitive with Solana. He emphasized that “Layer-2 networks are transforming the Ethereum ecosystem, and the effects are being felt in real time.”
The platform is excelling in artificial intelligence (AI) and decentralized finance (DeFi) projects. Initiatives like Clanker and Virtuals demonstrate Ethereum’s innovative and user-friendly infrastructure. According to Hougan, such projects enable Ethereum to reach a broader audience while maintaining its strong foundation.
Solana Dominates the Developer Ecosystem
A report by Electric Capital reveals substantial growth in Solana’s developer count. The report indicates an 83% increase in monthly active developers on the platform in 2023, surpassing Ethereum in this area. This signifies that Solana has become a leading ecosystem for new developers.
However, Hougan argues that Ethereum will maintain its leadership due to the advantages offered by Layer-2 technology. He stated that “Ethereum proves its flexibility with the infrastructure it provides for AI and DeFi projects,” and is creating a platform that is more cost-effective and user-friendly.
According to VanEck’s forecasts, Ethereum’s Layer-2 integration and staking infrastructure could push the platform’s price above $6,000 by 2025. While Solana may also reach new peaks, it is anticipated that Ethereum’s innovations will attract more investors.
