As of July 27, 2025, Solana and Ethereum are distinct and competing blockchain networks. Solana is not built “on” Ethereum; it operates as an independent Layer 1 blockchain. They have different architectures, transaction speeds and costs, and decentralization levels.
Table of contents
Key Differences
- Architecture: Solana uses a monolithic architecture, while Ethereum follows a modular design.
- Transaction Speed & Cost: Solana is known for its high transaction speeds and low costs compared to Ethereum’s higher gas fees.
- Decentralization: Ethereum is generally considered more decentralized than Solana.
- DEX Volume: Solana briefly overtook Ethereum in DEX trading volume in late 2023, indicating growing adoption.
Solana has been outperforming Ethereum and growing faster in recent years.
As of July 27, 2025, Solana and Ethereum are distinct and competing blockchain networks. Solana is not built “on” Ethereum; it operates as an independent Layer 1 blockchain. They have different architectures, transaction speeds and costs, and decentralization levels.
- Architecture: Solana uses a monolithic architecture, while Ethereum follows a modular design.
- Transaction Speed & Cost: Solana is known for its high transaction speeds and low costs compared to Ethereum’s higher gas fees.
- Decentralization: Ethereum is generally considered more decentralized than Solana.
- DEX Volume: Solana briefly overtook Ethereum in DEX trading volume in late 2023, indicating growing adoption.
Solana has been outperforming Ethereum and growing faster in recent years.
Understanding Layer 1 vs. Layer 2
To clarify, the question of whether Solana is “on” Ethereum likely stems from confusion about Layer 1 and Layer 2 blockchain solutions. Ethereum is a Layer 1 blockchain, meaning it’s the base layer. Layer 2 solutions, like Optimism and Arbitrum, are built on top of Ethereum to improve its scalability and transaction speed.
Solana, however, is also a Layer 1 blockchain. It doesn’t rely on Ethereum or any other blockchain for its core functionality. It validates transactions and secures its network independently.
Why the Confusion?
The misconception might arise from the fact that many projects initially launched on Ethereum and later expanded to other blockchains, including Solana. This cross-chain functionality can create the impression that these blockchains are somehow interconnected or dependent on each other.
Furthermore, bridges and interoperability solutions are being developed to allow assets to move between different blockchains like Ethereum and Solana. While these bridges facilitate communication and asset transfer, they don’t imply that one blockchain is built “on” the other.
The Future: Interoperability and Competition
Looking ahead, the future of blockchain technology likely involves increased interoperability between different Layer 1 chains like Solana and Ethereum. This could involve more sophisticated bridging solutions, cross-chain smart contracts, and other innovations that allow users to seamlessly interact with different blockchain ecosystems.
While Solana and Ethereum compete for developers, users, and market share, they also represent different approaches to solving the challenges of blockchain scalability, security, and decentralization. The long-term success of both networks will depend on their ability to adapt to the evolving needs of the decentralized web.
