Solana and Ethereum can coexist in tokenization race: Dragonfly

Solana and Ethereum will both thrive in the tokenization race and neither blockchain will push the other out of the space, says Dragonfly general partner Rob Hadick.

“They are both Facebook,” Hadick told CNBC’s “Squawk Box” on Wednesday, when asked which blockchain will gain market dominance like social media platform Facebook or fall behind like the once-popular MySpace.

Hadick said that with growing interest in tokenization and increasing economic activity onchain, there’s room for multiple blockchains to coexist. 

“There’s a lot of room in this market. If you believe that most assets are going to be tokenized, if you believe there is going to be a significant amount of economic activity on-chain […] You can’t just have one blockchain,” he said.

No single blockchain can win

Hadick said that “most stablecoins” are currently on Ethereum and that is where the majority of on-chain economic activity exists.

However, he said Solana handles most trading volume, making it “more optimized for that type of transaction flow.”

There is a significant gap between the two blockchains in terms of network asset value. Ethereum’s network asset value, including stablecoins, stands at $183.7 billion, while Solana’s, also including stablecoins, is $15.9 billion, according to RWA.XYZ data.

Hadick said that it is unlikely for one blockchain to become the only one, as no single chain can “scale large enough” to take that role. 

“I think we’re going to see different use cases on different blockchains,” he said. He also acknowledged the possibility of new blockchains emerging and taking market share.

Crypto platforms switch and change between blockchain networks

Some crypto platforms have been switching between the two blockchains as their business needs change.

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Fantasy sports crypto platform Sorare announced in October that it would migrate from Ethereum after six years, capitalizing on Solana’s scalability and consumer-focused user base. The company will move over 10 sports games and their trading cards to Solana.