Solana (SOL) has emerged as a worthy competitor to Ethereum (ETH). The SOL network has seen incredible growth over the last few years. ETH continues to dominate the decentralized application (DApp) industry, but its dominance is being questioned by SOL.

Why Solana May Dethrone Ethereum in 2025

SOL’s price fell to below $9 after FTX’s collapse in 2022. The popular cryptocurrency has since displayed an incredible comeback. SOL has hit multiple all-time highs over the last two years. The asset reached its most recent peak of $293.31 earlier this year in January. Since its 2022 lows till it hit an all-time high in January 2025, SOL’s price rallied by more than 3000%.

Ethereum (ETH), on the other hand, has not seen the same level of movement as SOL. The asset’s price rallied earlier this month after the Pectra update. ETH’s price also did not see much traction after the SEC approved spot ETH ETFs for the US market.

The Firedancer upgrade for the SOL network may further push the asset’s price. The update will lead to the network being able to handle more than one million transactions per second. ETH, on the other hand, can do about 15 transactions per second. The update may lead to a mass exodus of developers from the ETH ecosystem to the SOL network. The Firedancer update also aims to reduce taxes on the SOL network. Low taxes and high speeds could lead to more users flocking to the ecosystem.

Solana (SOL) also has a few spot ETF applications with the SEC. There is a high probability that the SEC will approve a SOL ETF sometime this year. A SOL ETF will likely lead to a surge in institutional investments for the asset. The move could lead to the project’s market cap surging many times over.

Also Read: Will Standard Chartered’s Solana (SOL) Prediction of $550 by 2030 Come True?

Both developments could potentially lead to Solana (SOL) dethroning Ethereum (ETH) as the second-largest cryptocurrency project.