The next is a visitor put up and opinion from Michael Egorov, Founding father of Curve Finance.
As DeFi edges nearer to mainstream finance, it should steadiness neutrality, safety, and throughput. In 2025, that steadiness is more and more outlined by two competing architectural visions.
The evolution of DeFi has all the time hinged on one core query: what sort of infrastructure can we wish to construct the way forward for finance on? Because the house matures and edges towards integration with international monetary methods, the urgency of this query solely intensifies.
In 2025, this choice is now not purely technical. It’s a contest between two visions: Ethereum’s modular, decentralization-first stack and Solana’s high-performance, monolithic strategy. The end result will assist decide what the subsequent section of blockchain-based finance seems like—and form the structure of tomorrow’s international monetary methods.
On this article, I share my perspective on how each networks are positioning themselves for the long run, and which is extra prone to emerge forward in the long term.
Ethereum: The Basis of Critical DeFi
Ethereum is greater than only a blockchain—it’s the bedrock of contemporary DeFi. It’s the place safe, composable purposes can thrive and the place long-term monetary infrastructure is being constructed. Institutional gamers flip to Ethereum after they wish to tokenize property with confidence, and capital flows right here for safety. The truth that over 55% of whole worth locked (TVL) throughout main chains resides on Ethereum attests to its dominance.
Not like Solana’s one-size-fits-all Layer 1, Ethereum has embraced a modular scaling strategy. Layer 1 stays the core basis, whereas Layer 2s deal with particular workloads corresponding to micro-transactions or gaming, avoiding congestion on the principle chain. This construction preserves decentralization whereas enabling scale. With the rollout of Proto-Danksharding in early 2025, Layer 2 transaction prices have dropped considerably—cementing Ethereum’s lead in modular structure.
That mentioned, Ethereum’s mannequin has trade-offs. Its reliance on Layer 2s can introduce fragmentation. Some DeFi primitives have to reside on Layer 1 for full composability. Whereas remoted purposes like order guide DEXs can operate on L2s, these options typically really feel like a short lived repair, not a long-term design. Really built-in DeFi calls for synchronous, on-chain composability—which works greatest when the whole lot operates on the identical base layer.
However Ethereum’s best power is its uncompromising dedication to decentralization. It is likely one of the most politically impartial blockchains in existence—a key trait in an more and more regulated surroundings. Pace and consumer expertise will be optimized over time, however decentralization is a founding precept. As soon as compromised, it’s almost unimaginable to revive.
Developer expertise is one other edge. Writing good contracts on Ethereum is considerably easier than on Solana, enabling builders to provide safe, well-tested code. This maturity is a part of the rationale why Ethereum builders are snug making contracts immutable—there’s confidence within the safety. It’s no coincidence that almost each main DeFi innovation originated on Ethereum. With over 1,388 deployed protocols in comparison with Solana’s 232, the numbers converse for themselves.
When safety, composability, and developer confidence align, all the ecosystem advantages.
Solana: Quick and Environment friendly, However Centralized
Solana addresses the identical scaling problem from a unique angle. Its monolithic structure retains the whole lot on a single Layer 1. This provides tangible advantages: extraordinarily quick transactions, low charges, and a seamless consumer expertise.
From a uncooked efficiency standpoint, Solana is compelling—able to processing 3,000–4,000 transactions per second (TPS) at this time, with expectations of reaching over 1 million TPS by way of the upcoming Firedancer validator. These numbers, primarily based on testnet outcomes, are spectacular in comparison with Ethereum’s common of 15–30 TPS.
Nevertheless, this efficiency comes with trade-offs. Solana’s design features a chief node that sequences transactions. Whereas this improves throughput, it introduces centralization dangers. The community is distributed, however not really decentralized. That distinction issues—particularly in a world the place establishments prioritize political neutrality and censorship resistance.
Nonetheless, not each use case requires deep decentralization. For instance, inside CBDCs or consumer-facing purposes in gaming and fintech could profit from Solana’s throughput and UX. I wouldn’t be shocked if we see state-adapted variations of Solana deployed in managed environments.
But regardless of Solana’s momentum, Ethereum stays the platform of selection for what I name “severe cash.”
Structural Soundness vs. Mass Adoption
The core DeFi debate in 2025—and past—facilities on what the sector ought to optimize for: structural integrity or mass adoption? Ought to we construct resilient, decentralized, and composable methods, even when they’re slower and extra advanced? Or prioritize scale and UX on the expense of core crypto values?
Chasing adoption with out structural soundness is short-sighted. If protocols compromise on safety or decentralization, regulators will inevitably impose the identical constraints that burden conventional finance. At that time, the promise of DeFi can be misplaced.
That’s why institutional capital continues to favor Ethereum—and why I consider that choice will maintain. Neutrality and safety can’t be retrofitted; they should be constructed into the bottom layer from the beginning.
If we would like DeFi to outlast the hype cycles and type the spine of a brand new international monetary order, Ethereum provides essentially the most sturdy path ahead. It offers us one of the best shot at constructing monetary rails which are resilient, safe, and unco-optable.
