The cryptocurrency landscape is evolving rapidly, with Ethereum continuing to hold its position as the second-largest digital asset by market capitalization. However, rising competition from so-called "Ethereum killers" like Solana (SOL) and Avalanche (AVAX) has sparked intense debate about the future of smart contract platforms. While both networks gained significant traction in 2021 due to lower transaction costs and faster processing speeds, recent price declines suggest growing challenges in maintaining momentum.
This article explores the factors behind the downturn in AVAX and SOL prices, evaluates their competitive edge against Ethereum, and analyzes whether these networks can reclaim investor confidence in 2025 and beyond.
The Rise of Ethereum Competitors
In recent years, Ethereum has faced increasing criticism over high gas fees and network congestion—especially during periods of high DeFi and NFT activity. As a result, users began seeking alternatives that offer similar functionality with improved scalability and cost-efficiency.
Enter Solana and Avalanche, two high-performance Layer 1 blockchains designed to support decentralized applications (dApps), smart contracts, and digital assets at scale. Both networks leverage innovative consensus mechanisms—Solana uses Proof of History (PoH) combined with Proof of Stake (PoS), while Avalanche employs a unique metastable consensus protocol—to achieve fast finality and low transaction fees.
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Their appeal was undeniable in 2021. With gas fees on Ethereum often exceeding $50 during peak usage, SOL and AVAX offered transactions for less than a penny. This economic advantage fueled rapid adoption across DeFi, NFTs, and Web3 projects, driving substantial price appreciation for both tokens.
Market Correction Hits High-Flyers
Despite strong fundamentals and growing ecosystems, both Solana and Avalanche have experienced notable price corrections entering 2025.
Solana’s Price Pullback
After reaching an all-time high (ATH) in November 2024, Solana’s price declined by approximately 30% from its peak. At the time of writing, SOL was trading around IDR 2,467,731 (~$0.16 USD), reflecting a 1.5% drop over the past 24 hours according to Coingecko data.
Several factors contributed to this decline:
- NFT Market Slowdown: The popularity of NFTs on Solana surged in late 2024, but demand has since cooled. A slowdown in minting activity and lower trading volumes on platforms like Magic Eden have reduced network usage.
- Increased Competition: Newer Layer 1 chains and Ethereum Layer 2 solutions (e.g., Arbitrum, Optimism) have captured developer attention,分流ing innovation away from SOL-based projects.
- Macroeconomic Pressures: Broader risk-off sentiment in financial markets affected speculative assets, including mid-cap cryptocurrencies like SOL.
Avalanche’s Struggles Amid Volatility
Avalanche also faced headwinds. AVAX dropped roughly 23.3% from its ATH recorded on November 21, 2024. Currently, it trades near IDR 1,587,591 (~$0.11 USD), down 3.5% in the last day.
Although Avalanche demonstrated resilience during mid-December 2024’s market sell-off—rebounding nearly 50% after a sharp dip—its recovery stalled amid weakening investor sentiment.
Key challenges include:
- Lower DeFi TVL Growth: Total Value Locked (TVL) in Avalanche’s DeFi ecosystem has grown slower compared to rivals like Polygon and Fantom.
- Limited NFT Momentum: Unlike Solana, which built a vibrant NFT community, Avalanche failed to gain significant traction in digital collectibles.
- Developer Migration: Some developers have shifted focus to ecosystems with stronger funding incentives or better tooling support.
Why Ethereum Still Holds an Edge
Despite the rise of competitors, Ethereum maintains several strategic advantages:
- Network Effects: Ethereum hosts the largest developer community, most established dApps (e.g., Uniswap, Aave), and deepest liquidity pools.
- Upgrades Improve Scalability: The transition to Ethereum 2.0 and continued rollouts of Layer 2 scaling solutions are reducing fees and increasing throughput.
- Institutional Adoption: Major financial institutions and enterprises continue building on Ethereum due to its security track record and regulatory clarity.
While AVAX and SOL offer technical improvements, Ethereum’s ecosystem maturity makes it harder for challengers to displace it as the dominant smart contract platform.
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Can Solana and Avalanche Rebound?
Both networks still possess strong long-term potential. Solana continues to innovate with initiatives like Firedancer—a new validator client aimed at improving network stability—and expanding into mobile with the Solana Mobile Stack. Meanwhile, Avalanche is pushing forward with subnet adoption, allowing enterprises and projects to launch custom blockchains within its ecosystem.
For a sustained recovery, however, both platforms must:
- Attract more developers through grants and ecosystem funding
- Improve user experience and onboarding tools
- Foster real-world use cases beyond speculation
- Strengthen decentralization and network security
Frequently Asked Questions (FAQ)
What are "Ethereum killer" blockchains?
"Ethereum killers" refer to alternative Layer 1 blockchains designed to outperform Ethereum in speed, cost, or scalability. Examples include Solana, Avalanche, Cardano, and Polkadot. While none have fully replaced Ethereum yet, they contribute to healthy competition in the blockchain space.
Why did Solana’s price drop in early 2025?
Solana’s price decline followed a broader crypto market correction and a slowdown in NFT activity—its primary use case. Additionally, increased competition from other fast blockchains and macroeconomic uncertainty contributed to reduced investor interest.
Is Avalanche still a good investment?
Avalanche remains a promising platform due to its subnet architecture and enterprise potential. However, short-term performance depends on increased adoption, developer engagement, and overall market conditions. Investors should assess risk tolerance and conduct thorough research before investing.
How do gas fees compare between Ethereum, Solana, and Avalanche?
Ethereum gas fees can range from $1 to over $50 depending on network congestion. In contrast, Solana charges less than $0.01 per transaction, while Avalanche fees typically stay under $0.10—making them far more affordable for frequent users.
What makes Solana faster than Ethereum?
Solana uses a combination of Proof of History (PoH) and Proof of Stake (PoS) to enable high throughput—up to 65,000 transactions per second (TPS). Ethereum currently processes around 30 TPS but is expected to improve with Layer 2 solutions and further upgrades.
Will any blockchain surpass Ethereum in 2025?
While it’s unlikely any single chain will fully surpass Ethereum’s ecosystem dominance in 2025, multi-chain environments are becoming the norm. Platforms like Solana and Avalanche may capture niche markets or specific use cases rather than replace Ethereum entirely.
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Final Thoughts
The narrative of “Ethereum killers” remains compelling—but reality is more nuanced. While Solana and Avalanche delivered impressive innovations and captured market share in 2024, sustaining growth requires more than just speed and low fees. Long-term success hinges on robust developer ecosystems, real-world utility, and resilience during bear markets.
As the crypto industry matures, investors should focus on fundamentals rather than hype. Diversification across proven platforms—including Ethereum, Solana, and Avalanche—may offer balanced exposure to the evolving decentralized economy.
Keywords: Solana (SOL), Avalanche (AVAX), Ethereum killer, crypto price decline, Layer 1 blockchain, DeFi, NFTs, blockchain scalability