Solana’s golden age may be ending due to Ethereum Layer 2 surpassing it in latency and throughput. Solana has been successful in the past year or two in these two key performance metrics, but Ethereum is catching up. Ethereum Layer 2 has demonstrated its ability to scale horizontally, and its throughput is already 100 times higher than Ethereum Layer 1, with potential to grow to 1,000 or 10,000 times next year.
Solana has a strategy of concentrating all activity on a single server, which limits its ability to increase throughput. Ethereum Foundation researcher Justin Drake tweeted that the foundation is investing millions of dollars in zkVMs projects, including zkRISC-V formal verification, Poseidon cryptanalysis, and L2beat for zkVMs.
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