Is Ethereum’s reign as the king of smart contracts under threat? That’s the question many crypto investors are asking after Anthony Scaramucci, founder of SkyBridge Capital, recently suggested that Solana could soon overtake Ethereum. With the crypto market as unpredictable as ever, and both blockchains rolling out upgrades and attracting institutional interest, it’s a good time to take a closer look at what’s really happening beneath the surface.
Ethereum’s Journey and Solana Surge
Ethereum has been the backbone of decentralised finance (DeFi) since its launch, powering everything from NFTs to decentralised exchanges. Its switch to proof-of-stake in 2022 was a major step forward, cutting energy use and paving the way for future upgrades. But while Ethereum has been building, Solana has been sprinting.
Solana’s pitch is simple: faster transactions and lower fees. Since 2020, it has grown from a niche project into a major player, with more developers, more dApps, and a growing share of total value locked (TVL) in DeFi. The question is, can it keep up the pace, and does it have what it takes to knock Ethereum off its perch?
Anthony Scaramucci: Betting Big on Solana
Scaramucci didn’t mince words in his recent interview: “Solana is what Ethereum was supposed to be.” He points to Solana’s speed, low transaction costs, and growing ecosystem as reasons why it could become the “Visa of blockchain.” It’s a bold claim, but it’s not without substance. Solana’s ability to handle thousands of transactions per second at a fraction of a cent has caught the eye of both retail and institutional investors.
Cantor Fitzgerald, a major Wall Street player, is signalling increased institutional confidence in Solana. The firm recently announced a strategic shift in its treasury, dedicating more resources to Solana than Ethereum. This decision is driven by Solana’s superior speed and cost-efficiency, which are significant advantages for large-scale financial operations.
Solana at a Crossroads, Key Support Levels and Bearish Patterns, ETF Hopes Versus Bearish Price Signals
Solana (SOL) is at a critical juncture, facing conflicting pressures from optimistic speculation about potential ETF approvals and strong technical indicators suggesting a significant price decline. The coming weeks are crucial for determining SOL’s direction.
SOL recently fell by 12.5%, with technical analysts identifying a descending triangle pattern on the weekly chart. This pattern frequently indicates further downward movement. The key support area of $140–$145 is currently at risk. Should this level be breached, the pattern suggests a potential 30% crash, pushing SOL down to the $102–$103 range. This bearish forecast is reinforced by a pattern of lower highs and declining momentum, increasing the stakes for SOL investors.
ETF Momentum: A Bullish Counterweight
Despite the technical risks, Solana’s fundamentals remain robust. The network boasts over 3.25 million active wallets and leads all major blockchains in daily revenue, generating $4.79 million, outpacing even Ethereum and Tron. The real wildcard, however, is the potential approval of a Solana ETF. VanEck’s recent DTCC registration for a Solana ETF marks a significant regulatory milestone. Bloomberg’s Eric Balchunas pegs the odds of SEC approval in 2025 at 90%, citing ongoing dialogue between the SEC and ETF issuers.
Arguments for Ethereum’s Continued Dominance
Not everyone is convinced that Solana will take the crown. Michaël van de Poppe, founder of MN Trading Capital, observed a shift in market focus. While Bitcoin continues to dominate attention, Ethereum is subtly accumulating momentum. He stated, “The market isn’t solely focused on Bitcoin anymore. We’re actually seeing momentum build around Ethereum.”
With the largest developer community, the most dApps, and a huge share of DeFi activity, Ethereum’s position is still strong. Upcoming upgrades like Proto-Danksharding (EIP-4844) are expected to lower fees and boost capacity, addressing some of the main criticisms.
$ETH / $BTC: As you told you many times, this is the most important chart to look at.
We need to see some strength before we can see the big reversal. pic.twitter.com/147E1VpfTQ
— Crypto Fella (@CryptoFellaTx) June 18, 2025
What’s Driving the Market Right Now? Macro Trends and Recent Events, Geopolitical Shocks
Ethereum’s price recently plummeted by 10%, a significant drop attributed to rising US-Iran geopolitical tensions and military actions. This market instability triggered substantial liquidations, wiping out over $282 million in Ethereum positions and affecting more than 172,000 traders within a single 24-hour period. This incident underscores the direct impact of global events on digital assets, especially in an already fragile market. Technically, Ethereum’s price has fallen below crucial support levels, and its recovery hinges on its ability to surpass specific resistance points.
Regulatory Shifts & Institutional Dynamics
The regulatory landscape remains a significant factor, with the US SEC’s evolving position on Ethereum, particularly concerning staking and ETF approvals, generating both optimism and apprehension. Although spot Ethereum ETFs have drawn in new capital, ongoing regulatory discussions necessitate investor vigilance.
Institutions are actively seeking out blockchains that offer speed, affordability, and dependability. Solana’s recent surge in institutional engagement, underscored by Cantor Fitzgerald’s backing, indicates a market openness to alternative platforms. Nevertheless, Ethereum maintains a strong presence, particularly within enterprise solutions and established DeFi initiatives.
The Takeaway: Evolution, Not Overthrow
So, will Solana overtake Ethereum? It’s possible, but not inevitable. Ethereum’s deep roots and upcoming upgrades make it a tough competitor, even as Solana’s speed and cost advantages attract fresh capital and attention. For investors, the best approach is to stay informed, diversify, and watch how these two giants adapt to a rapidly changing market.
The real story here isn’t about one chain replacing the other. It’s about the evolution of blockchain technology—and the opportunities that come with it. As the landscape shifts, smart investors will keep an eye on both Ethereum and Solana, ready to act as new trends emerge.
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