The next is a visitor publish and opinion from Michael Egorov, Founding father of Curve Finance.
As DeFi edges nearer to mainstream finance, it should stability neutrality, safety, and throughput. In 2025, that stability 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 area matures and edges towards integration with world monetary programs, the urgency of this query solely intensifies.
In 2025, this resolution is not purely technical. It’s a contest between two visions: Ethereum’s modular, decentralization-first stack and Solana’s high-performance, monolithic strategy. The result will assist decide what the subsequent part of blockchain-based finance seems like—and form the structure of tomorrow’s world monetary programs.
On this article, I share my perspective on how each networks are positioning themselves for the long run, and which is extra more likely to emerge forward in the long term.
Ethereum: The Basis of Severe DeFi
Ethereum is greater than only a blockchain—it’s the bedrock of recent DeFi. It’s the place safe, composable functions can thrive and the place long-term monetary infrastructure is being constructed. Institutional gamers flip to Ethereum after they wish to tokenize belongings 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 primary 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 functions like order e-book DEXs can operate on L2s, these options usually really feel like a brief repair, not a long-term design. Really built-in DeFi calls for synchronous, on-chain composability—which works finest when all the things operates on the similar base layer.
However Ethereum’s biggest energy is its uncompromising dedication to decentralization. It is without doubt one of the most politically impartial blockchains in existence—a key trait in an more and more regulated atmosphere. Velocity and consumer expertise could be optimized over time, however decentralization is a founding precept. As soon as compromised, it’s almost inconceivable to revive.
Developer expertise is one other edge. Writing good contracts on Ethereum is considerably easier than on Solana, enabling builders to supply safe, well-tested code. This maturity is a part of the explanation why Ethereum builders are comfy 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 communicate for themselves.
When safety, composability, and developer confidence align, the whole ecosystem advantages.
Solana: Quick and Environment friendly, However Centralized
Solana addresses the identical scaling problem from a unique angle. Its monolithic structure retains all the things on a single Layer 1. This affords 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 the moment, with expectations of reaching over 1 million TPS via the upcoming Firedancer validator. These numbers, primarily based on testnet outcomes, are spectacular in comparison with Ethereum’s common of 15–30 TPS.
Nonetheless, 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, inner CBDCs or consumer-facing functions in gaming and fintech could profit from Solana’s throughput and UX. I wouldn’t be stunned 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 programs, 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 imagine that choice will maintain. Neutrality and safety can’t be retrofitted; they have to be constructed into the bottom layer from the beginning.
If we wish DeFi to outlast the hype cycles and type the spine of a brand new world monetary order, Ethereum affords probably the most sturdy path ahead. It offers us one of the best shot at constructing monetary rails which might be resilient, safe, and unco-optable.
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