Ethereum Faces Revenue and Governance Challenges as Solana’s Startup Model Gains Momentum
Ethereum is facing mounting governance and revenue challenges. With Vitalik Buterin’s authority dispersed across Layer-2 networks, protocol fee income remains limited. Critics warn Ethereum risks becoming an “IBM of blockchain,” offering free EVM licensing without a sustainable take-rate business model. Developer culture has skewed towards foundation-aligned projects, raising decentralization concerns. Wall Street firms leverage Ethereum’s mature technology to build permissioned chains, reinforcing its tool-like positioning. Meanwhile, Solana’s startup-style model—centralized execution, unified token economics, and an experimental developer community—gains traction. The contrast between Ethereum’s loose federated system and Solana’s efficient integration is driving innovation and accelerating the global asset-on-chain trend.
Neutral
This analysis highlights structural risks for Ethereum alongside Solana’s efficient startup model. Traders may reassess allocations as governance and revenue concerns weigh on Ethereum, while Solana’s unified token economics attract experimentation. Historically, protocol competition creates short-term volatility but fosters long-term sector growth. Overall, the news underscores healthy rivalry and continued innovation, supporting a neutral market stance.