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$SOL  has broken out above its descending trendline and is currently performing a retest. The immediate bullish objective is a clean move above the $125 level, with $129 as the next upside target.

Last week’s spot ETF flows show money moving within crypto, not leaving it. • $BTC: − $782M • $ETH: − $102.34M • $SOL: + $13.14M • $XRP: + $64M Bitcoin and Ethereum saw outflows, while Solana and XRP quietly attracted fresh capital.

Amidst an evolving crypto landscape where the emphasis shifts from mere narrative-driven surges to measurable value discussions, prominent figure Mike Novogratz provided insightful evaluations on altcoins XRP and Cardano. He highlighted the inevitable challenge for these projects to demonstrate actual use and revenue generation, noting that as the market matures, altcoin valuations follow suit. His thoughts, shared during a Galaxy Digital interview supported by blockchain data, sparked a new debate about the sustainability of XRP and ADA’s current positions. Is Community Support Sufficient? Valuation Linked to Revenue and Use Is Community Support Sufficient? In a conversation with Galaxy Digital Research Director Alex Thorn, Mike Novogratz shared observations on XRP and Cardano, noting limited blockchain activity despite their loyal investor bases. The real question, according to Novogratz, is whether these communities can maintain their loyalty amid growing competition. He pointed out that blockchains with low usage intensity may struggle against emerging alternatives. Recognizing Charles Hoskinson’s achievement in building a strong Cardano community, Novogratz noted the network’s limited real usage. Similarly, he recalled criticisms of XRP’s organic activity despite its longstanding high market valuation. In his view, the crypto market increasingly demands more than mere faith and expectation for survival. Valuation Linked to Revenue and Use Novogratz suggested that, unlike Bitcoin considered as “money,” altcoins will progressively be assessed like traditional companies. Critical determinants of market value include revenue generation, user base, and tangible economic contributions. Despite RippleNet’s endeavors employing XRP for cross-border payments with banks and fintech, blockchain activity remains below expectations. Data supports this perspective. CryptoQuant’s figures indicate a modest 16,000 active addresses on the XRP network, with Cardano slightly higher at 19,000. Conversely, Solana, backed by DeFi applications and popular projects, boasts millions of active addresses. Yet, XRP maintains a market cap around $115 billion, while ADA trades in the $13–14 billion range. Novogratz highlighted Hyperliquid, a decentralized futures exchange, as an example of a project generating real income. The platform uses its earnings for HYPE coin buybacks, providing the asset with a share-like economic structure. He argued that this approach might gain importance among investors in the future.

Ethereum anchors stablecoins and settlement; Solana leads fast, high-volume trading flows. Specialization replaces single-chain dominance as networks absorb different functions. Tokenization and throughput demands drive growth as chains coexist rather than compete. Ethereum and Solana now anchor different parts of the crypto economy, confirming the collapse of the single-chain dominance model. During a recent interview, Dragonfly general partner Rob Hadick explained how trading, stablecoins, and tokenized assets increasingly operate across specialized blockchains. This shows rising on-chain demand and institutional adoption, and technical limits that prevent a single network from serving every economic function. Ethereum and Solana: Different Economic Roles Rob Hadick said the industry no longer treats blockchains as universal platforms. Instead, each network increasingly supports distinct economic functions. Ethereum currently hosts most stablecoin issuance and holds a large share of total value locked, according to market data discussed during the interview. However, trading activity increasingly favors Solana due to faster settlement and lower transaction costs. As a result, Solana processes higher volumes for active trading flows. This split highlights how developers and users choose networks based on function rather than ideology. Hadick explained that demand for block space continues rising across the sector. Consequently, no single blockchain can scale to handle all future on-chain activity. Ethereum and Solana, therefore, coexist, each absorbing different transaction types. This separation also reflects infrastructure design. Ethereum prioritizes security and composability, while Solana optimizes for speed and throughput. These design choices shape how capital and applications distribute across chains. As activity spreads, the idea of one dominant blockchain fades. Instead, networks resemble infrastructure layers, each optimized for specific financial behaviors. This framing aligns with how global technology platforms dominate separate user activities rather than replacing one another. Tokenization and Stablecoins Drive Multi-Chain Growth The discussion also focused on tokenized assets and stablecoins as major drivers behind specialization. Hadick cited McKinsey research estimating that about 3% of cross-border payments now use stablecoins. Notably, that figure stood near zero just one year earlier. Most stablecoins currently operate on Ethereum. This concentration supports Ethereum’s role as a settlement layer for large financial positions. However, Solana increasingly handles high-frequency transfers and consumer-facing flows. Hadick also referenced growing institutional interest in tokenization. Asset managers and financial firms now publicly discuss on-chain settlement models. As these systems scale, they require interoperability rather than closed ecosystems. The interview highlighted a structural challenge for private blockchain systems. Large institutions prefer neutral infrastructure when interacting with competitors. Therefore, public blockchains provide common ground without forcing participants into proprietary environments. This needs further support for multiple chains. Different financial products require different performance characteristics. Consequently, specialization reduces friction and improves efficiency across markets. Prediction markets offered a clear example. Hadick noted that Polymarket volume rose from roughly $50 million monthly in early 2024 to about $4 billion this month. Sports-related contracts represent only about 35 to 40 percent of that activity. Related: Why Strategy Failure Could Shock Crypto Markets In 2026 New Blockchains Add Pressure, Not Replacement Despite Ethereum and Solana’s prominence, Hadick stressed that innovation continues at the base-layer level. He pointed to Monad, a newer blockchain targeting high throughput. Monad currently carries an estimated $2 billion valuation. However, Hadick warned that many blockchain tokens launch during early development stages. As a result, technical risk remains high. This reality makes it less likely that one established network will suddenly replace another. He also pointed to past tech cycles, noting that Bitcoin once led the space before Ethereum came along with broader capabilities. Solana later improved performance metrics. Hadick argued that improvement does not guarantee replacement. Instead, each generation adds capacity. More chains increase total block space rather than eliminating existing networks. This pattern reinforces coexistence rather than consolidation. Hadick emphasized that future innovation remains likely. However, scaling global financial activity requires multiple interoperable systems. No single chain currently satisfies all performance, security, and governance requirements. As a result, Ethereum and Solana function as parallel infrastructure layers. Each absorbs demand suited to its architecture. This split is driven by how the systems are built, not because one is failing. The divide between Ethereum and Solana shows that crypto infrastructure is growing into specialized layers, each serving different financial needs. Stablecoins, trading activity, and tokenized assets spread across networks based on what each chain does best. These trends show that growth on-chain now relies on networks working alongside each other, not one taking over. Disclaimer: The information provided by CryptoTale is for educational and informational purposes only and should not be considered financial advice. Always conduct your own research and consult with a professional before making any investment decisions. CryptoTale is not liable for any financial losses resulting from the use of the content. Tags Ethereum (ETH) News Solana (SOL) News