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 stability neutrality, safety, and throughput. In 2025, that stability is more and more outlined by two competing architectural visions.
The evolution of DeFi has at all times hinged on one core query: what sort of infrastructure will we wish to construct the way forward for finance on? Because the area matures and edges towards integration with international monetary programs, the urgency of this query solely intensifies.
In 2025, this choice 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 end result will assist decide what the following section of blockchain-based finance seems like—and form the structure of tomorrow’s international 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 once they wish to tokenize belongings with confidence, and capital flows right here for safety. The truth that over 55% of complete 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 akin 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 must stay on Layer 1 for full composability. Whereas remoted functions like order guide DEXs can perform 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 finest when all the pieces operates on the identical base layer.
However Ethereum’s best energy 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 atmosphere. Velocity and person expertise could be optimized over time, however decentralization is a founding precept. As soon as compromised, it’s practically unimaginable to revive.
Developer expertise is one other edge. Writing good contracts on Ethereum is considerably less complicated than on Solana, enabling builders to supply safe, well-tested code. This maturity is a part of the explanation why Ethereum builders are snug making contracts immutable—there’s confidence within the safety. It’s no coincidence that just about 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, your entire ecosystem advantages.
Solana: Quick and Environment friendly, However Centralized
Solana addresses the identical scaling problem from a distinct angle. Its monolithic structure retains all the pieces on a single Layer 1. This affords tangible advantages: extraordinarily quick transactions, low charges, and a seamless person 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, inner CBDCs or consumer-facing functions 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 alternative for what I name “critical 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 complicated? 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 desire 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 kind the spine of a brand new international monetary order, Ethereum affords essentially the most strong path ahead. It offers us the very best shot at constructing monetary rails which might be resilient, safe, and unco-optable.
