Ethereum’s Dominance in RWA Tokenization Faces Challenge from Solana and Compliance-Optimized Blockchains
Ethereum currently leads the tokenization of real-world assets (RWA) due to its established ecosystem, institutional trust, and robust DeFi liquidity. Major institutions, including JPMorgan and the European Investment Bank, have chosen Ethereum for high-profile RWA initiatives, benefiting from its mature token standards such as ERC-1400 and ERC-3643. However, Ethereum continues to face challenges with scalability, unpredictable transaction fees, and slower settlement times compared to traditional finance. While Layer 2 solutions and protocol upgrades aim to address these issues, emerging projects are gaining attention. Solana, with its high-speed and cost-effective transactions, is attracting RWA projects that require efficiency and automation. Specialized blockchains like MANTRA and Maple are also emerging, offering native compliance and features tailored for regulated asset tokenization. Although Ethereum’s deep liquidity and regulatory acceptance maintain its position for large-scale RWA structures, growing demand for scalable and compliant solutions is driving new projects to alternative platforms. As the RWA market is still in its early stages—at less than 2% of predicted potential—leadership in the coming phase will likely depend on full on-chain compliance capabilities, comprehensive service ecosystems, and sustained liquidity. The shift toward multi-chain adoption signals increased competition, and traders should monitor RWA liquidity migration and platform preferences for potential opportunities.
Neutral
While Ethereum maintains its leadership in RWA tokenization due to its extensive DeFi liquidity, institutional backing, and proven standards, the emergence of competitors like Solana and compliance-focused blockchains introduces growing competitive pressure. Scalability and fee challenges on Ethereum are prompting some projects to explore alternative chains, which could gradually affect Ethereum’s RWA market share. However, the overall RWA market is still very small, and Ethereum’s current position, regulatory acceptance, and active development of Layer 2 solutions sustain its attractiveness in the short term. Therefore, immediate price impact remains muted. In the longer term, increased competition, multi-chain adoption, and successful integration of compliance features could shift liquidity and impact value—but this effect is still unfolding. Traders should monitor migration trends, but no substantial bullish or bearish catalyst is expected in the immediate term.