A twist in the Ethereum-Solana battle
What if Vitalik is right about crypto “casinos”?
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Ethereum’s founder is pushing back against the narrative that the decentralized app platform is falling behind competitors like Solana. That might not be as crazy as it sounds.
CoinDesk’s Margaux Nijkerk reports:
Ethereum co-founder Vitalik Buterin expressed his disappointment with some ETH community members and thought it was “bad” that the ecosystem was too welcoming for “casinos.”
During an ask-me-anything (AMA) on Tako, Buterin responded to a question about whether he had felt disappointed at the Ethereum Foundation, the crypto industry or the community. He answered “of course,” especially when others question why Ethereum has not been more open to applications with blockchain gambling, seemingly taking a jab at its competitor, Solana, and how their ecosystem has embraced a lot of memecoin activity over the past year.
Why it matters: Since the meltdown of FTX in November 2022 — a pivotal event for the entire crypto industry — Solana’s network activity and valuation have exploded, easily outpacing Ethereum’s growth. The ether token’s market capitalization of $378 billion is now “just” four times that of Solana, compared to six times greater prior to FTX’s collapse, according to CoinMarketCap data.
Hence there has been anxiety — and occasional recrimination — in the Ethereum community lately about the direction of the platform.
But beyond the raw numbers, Buterin raises some points worth considering about how exactly the broader web3 ecosystem has reached its new status quo and what role Ethereum should play in the future.
Solana has certainly become the go-to platform lately for developers launching memecoins, which by definition carry no intrinsic value. That includes the Solana-based coins trading under the tickers TRUMP, MELANIA, and LIBRA that have recently sparked government corruption scandals in the U.S. and Argentina.
Call me nuts, but if Buterin, who leads the Ethereum Foundation, wants to cede such sketchy ground to Solana and focus instead on quality over quantity, I think that probably wouldn’t be the worst thing for Ethereum long term. Or web3 in general.
