The following is a guest post and opinion from Michael Egorov, Founder of Curve Finance.
As DeFi edges closer to mainstream finance, it must balance neutrality, security, and throughput. In 2025, that balance is increasingly defined by two competing architectural visions.
The evolution of DeFi has always hinged on one core question: what kind of infrastructure do we want to build the future of finance on? As the space matures and edges toward integration with global financial systems, the urgency of this question only intensifies.
In 2025, this decision is no longer purely technical. It’s a contest between two visions: Ethereum’s modular, decentralization-first stack and Solana’s high-performance, monolithic approach. The outcome will help determine what the next phase of blockchain-based finance looks like—and shape the architecture of tomorrow’s global financial systems.
In this article, I share my perspective on how both networks are positioning themselves for the future, and which is more likely to emerge ahead in the long run.
Ethereum: The Foundation of Serious DeFi
Ethereum is more than just a blockchain—it’s the bedrock of modern DeFi. It’s where secure, composable applications can thrive and where long-term financial infrastructure is being built. Institutional players turn to Ethereum when they want to tokenize assets with confidence, and capital flows here for security. The fact that over 55% of total value locked (TVL) across major chains resides on Ethereum attests to its dominance.
Unlike Solana’s one-size-fits-all Layer 1, Ethereum has embraced a modular scaling approach. Layer 1 remains the core foundation, while Layer 2s handle specific workloads such as micro-transactions or gaming, avoiding congestion on the main chain. This structure preserves decentralization while enabling scale. With the rollout of Proto-Danksharding in early 2025, Layer 2 transaction costs have dropped significantly—cementing Ethereum’s lead in modular architecture.
That said, Ethereum’s model has trade-offs. Its reliance on Layer 2s can introduce fragmentation. Some DeFi primitives need to live on Layer 1 for full composability. While isolated applications like order book DEXs can function on L2s, these solutions often feel like a temporary fix, not a long-term design. Truly integrated DeFi demands synchronous, on-chain composability—which works best when everything operates at the same base layer.
But Ethereum’s greatest strength is its uncompromising commitment to decentralization. It is one of the most politically neutral blockchains in existence—a key trait in an increasingly regulated environment. Speed and user experience can be optimized over time, but decentralization is a founding principle. Once compromised, it’s nearly impossible to restore.
Developer experience is another edge. Writing smart contracts on Ethereum is significantly simpler than on Solana, enabling developers to produce secure, well-tested code. This maturity is part of the reason why Ethereum developers are comfortable making contracts immutable—there’s confidence in the security. It’s no coincidence that nearly every major DeFi innovation originated on Ethereum. With over 1,388 deployed protocols compared to Solana’s 232, the numbers speak for themselves.
When security, composability, and developer confidence align, the entire ecosystem benefits.
Solana: Fast and Efficient, But Centralized
Solana addresses the same scaling challenge from a different angle. Its monolithic architecture keeps everything on a single Layer 1. This offers tangible benefits: extremely fast transactions, low fees, and a seamless user experience.
From a raw performance standpoint, Solana is compelling—capable of processing 3,000–4,000 transactions per second (TPS) today, with expectations of reaching over 1 million TPS through the upcoming Firedancer validator. These numbers, based on testnet results, are impressive compared to Ethereum’s average of 15–30 TPS.
However, this performance comes with trade-offs. Solana’s design includes a leader node that sequences transactions. While this improves throughput, it introduces centralization risks. The network is distributed, but not truly decentralized. That distinction matters—especially in a world where institutions prioritize political neutrality and censorship resistance.
Still, not every use case requires deep decentralization. For example, internal CBDCs or consumer-facing applications in gaming and fintech may benefit from Solana’s throughput and UX. I wouldn’t be surprised if we see state-adapted versions of Solana deployed in controlled environments.
Yet despite Solana’s momentum, Ethereum remains the platform of choice for what I call “serious money.”
Structural Soundness vs. Mass Adoption
The core DeFi debate in 2025—and beyond—centers on what the sector should optimize for: structural integrity or mass adoption? Should we build resilient, decentralized, and composable systems, even if they’re slower and more complex? Or prioritize scale and UX at the expense of core crypto values?
Chasing adoption without structural soundness is short-sighted. If protocols compromise on security or decentralization, regulators will inevitably impose the same constraints that burden traditional finance. At that point, the promise of DeFi would be lost.
That’s why institutional capital continues to favor Ethereum—and why I believe that preference will hold. Neutrality and security can’t be retrofitted; they must be built into the base layer from the start.
If we want DeFi to outlast the hype cycles and form the backbone of a new global financial order, Ethereum offers the most robust path forward. It gives us the best shot at building financial rails that are resilient, secure, and unco-optable.
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