Tokenization Could Lift Both Solana and Ethereum, Dragonfly’s Rob Hadick Says

Tokenization isn't just a buzzword—it's the next wave poised to lift the entire crypto market, and two blockchains stand to gain the most.

Why Solana and Ethereum Win

Solana's speed and low costs make it the go-to for high-volume tokenization of real-world assets. Think everything from real estate deeds to concert tickets. Ethereum's established security and massive developer ecosystem position it as the trusted ledger for high-value institutional plays. They're not competing—they're carving up the market.

The Finance Sector's Reluctant Embrace

Traditional finance is finally waking up. The promise of 24/7 markets, instant settlement, and programmable assets is too lucrative to ignore. It's the classic story: adapt or get left holding a bag of outdated, illiquid paper. Wall Street hates disruption until it sees the profit margin.

A Rising Tide Lifts All Boats

Mass adoption of asset tokenization doesn't create a single winner. It validates the entire infrastructure. Every new tokenized stock, bond, or piece of art needs a secure, functional blockchain to live on. That demand fuels development, attracts capital, and pushes the technology forward for everyone. Even the suits are starting to get it—usually about five years too late.

Each blockchain will have distinct use cases

Hadick recognized that ETH has more stablecoins and greater on-chain activity than Solana, but argued that the latter also handles higher trading volumes, thus enhancing trading efficiency. He explained, however, that no single blockchain is likely to dominate the market completely, due to scaling limitations.

He noted, “I think we’re going to see different use cases on different blockchains,” recognizing the potential for new entrants to gain market share. 

So far, Ethereum’s market, including stablecoins, stands at $183.7 billion, dwarfing Solana’s $15.9 billion, as per RWA.XYZ analysis. Additionally, more institutions have recently adopted the ethereum network, including JPMorgan, which could drive mass adoption and increase the network’s advantage over Solana.

Wall Street’s BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), Fidelity’s Treasury Digital Fund (FYHXX), and now, JPMorgan’s OnChain Net Yield Fund (MONY), have now launched tokenized MMFs on Ethereum.

Nonetheless, both Ethereum and Solana must contend with competition from private networks, although many tokenization projects are currently opting to remain blockchain-agnostic. Ctrl Alt CEO Matt Ong commented on the current market preferences, “We’re seeing a lot of interest in the private networks from the big banks. But I think outside of that, there is still a massive push towards public [blockchains].”

Crypto platforms transition from Ethereum to Solana

Some crypto platforms have also been shifting between Ethereum and Solana. In October, the Fantasy sports platform Sorare transitioned from Ethereum to Solana, aiming for better scalability, lower fees, and a more open ecosystem. It moved more than 10 sports games and their associated cards. Nevertheless, Sorare CEO Nicolas Julia noted that he still trusts Ethereum, even as he referred to the change as an “upgrade.”

Additionally, in 2023, the RENDER Foundation reported that it had migrated its core infrastructure from Ethereum to Solana, allocating up to 1.14 million RNDR tokens for the transition.

Earlier this year, Mike Novogratz’s Galaxy Digital also exchanged $100 million worth of ether for Solana’s SOL. At the time, analysts speculated, the company made the move due to Ethereum’s “structural decline.” Then, in September, the company bought over $700 million in solana in just two days for its SOL treasury investment in Forward Industries.

At the time, the firm even described Solana as “uniquely positioned to power the next generation of capital markets.” Novogratz even commented, “You’ve got a blockchain that’s now fast enough, tailor-made to be the blockchain for financial markets.”

Coinbase Asset Management president Anthony Bassili, in November, noted that with Bitcoin and Ether dominating crypto portfolios, Solana could take third place after them.

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