Solana’s affordable scaling is putting pressure on Ethereum’s dominance in smart contracts

The momentum in the cryptocurrency sector is beginning to shift as

(SOL) is starting to outpace (ETH), fueled by a rise in on-chain transactions, increased accumulation away from exchanges, and extremely low transaction fees. On September 16, 2025, Solana’s network volume reached a record peak, highlighting growing user engagement and heightened interest in its ecosystem. Experts have pointed out that much of this momentum stems from a spike in activity among non-custodial wallets, signifying a trend toward users preferring direct on-chain management and transfers rather than relying on centralized platforms.

A major driver of Solana’s recent lead is the significant reduction in transaction expenses. The most recent figures reveal that typical gas fees on Solana have dropped to nearly nothing, making the platform especially appealing to both developers and end users, in contrast to Ethereum’s comparatively higher costs. This affordability has encouraged more participation in decentralized finance (DeFi) and non-fungible token (NFT) markets on Solana as individuals are drawn by the lower costs of entry.

Meanwhile, Ethereum appears to be losing momentum as Solana’s presence strengthens. Although Ethereum still holds a commanding position in the smart contract space overall, up-to-date on-chain metrics indicate its network growth has leveled off. Some commentators link this to Ethereum’s ongoing transition to a proof-of-stake mechanism, which has brought increased stability but hasn’t resulted in a matching boost in network adoption or transaction revenues.

The changing flow of capital is also reflected in token valuations. In the past month, Solana has outperformed Ethereum in percentage price gains, with many commentators crediting this to robust fundamentals, a surge in decentralized application (dApp) usage, and a notable rise in large-holder accumulation. Data from blockchain analytics services shows that major investors have been moving Solana off exchanges, hinting at positive long-term expectations.

Yet, there are voices warning that Solana’s swift ascent could introduce new risks, especially as the network expands and may encounter infrastructure challenges. Supporters, however, maintain that Solana’s design—offering high throughput and low latency—gives it a strong advantage to hold its position. The industry is watching closely to see if Ethereum’s upcoming improvements will help it regain momentum, or if Solana will continue to lead in the immediate future.