In the quest for raising capital on-chain, BlackRock's recent decision to launch a fund on Ethereum, despite Solana's efficiency lead, has raised a question about institutional capital's perception of Solana as fundamentally undervalued.
What compels an institutional heavyweight to launch a product on a particular blockchain? At a fundamental level, institutions tend to evaluate core infrastructure metrics such as transaction speed, execution costs, and settlement finality when choosing a Layer-1 network.
The logic is simple: Faster confirmation times and lower fees allow a blockchain to handle higher transaction throughput, which directly supports a smoother user experience. Viewed through this lens, Solana stands out. As the chart below shows, Solana processed 696 million transactions over the past week. Every other chain combined processed about 593 million.
One network alone generated more activity than the rest of crypto, accounting for 54% of total on-chain transactions. As discussed earlier, high transaction volume is often a direct reflection of a chain’s underlying metrics. To put this into perspective, comparing Solana with Ethereum helps highlight the gap. According to Chainspect data, Solana recently achieved transaction fees that are nearly 100% lower than Ethereum’s.
Meanwhile, the first successful Alpenglow upgrade cut finalization times from roughly 12.8 seconds to around 100-150 milliseconds, pushing Solana closer to near-instant settlement speeds. Given this setup, one would reasonably expect large institutional players to lean toward Solana for product launches. Yet BlackRock opted for Ethereum for its money market fund launch instead, raising a key question: Does institutional capital still hesitate to price Solana as fundamentally undervalued?
Solana’s efficiency edge vs. Ethereum’s credibility premium One key takeaway from BlackRock’s latest move is how important trust is for institutions. For context, institutional giant BlackRock is launching two tokenized money market funds. One of the funds is tied to a $6.1 billion Treasury liquidity vehicle and is designed primarily for stablecoin holders rather than bank account users. The move highlights a broader shift toward integrating TradFi with DeFi, enabling capital to move more efficiently on-chain.
The key takeaway? BlackRock chose Ethereum for the launch. This creates a clear divergence. From an on-chain efficiency standpoint, Solana leads with stronger infrastructure.
Naturally, the question follows: Why did BlackRock still choose Ethereum? The answer largely comes down to liquidity. As the chart below shows, despite the recent market crunch, Ethereum still dominates total value locked , holding over 50% of on-chain liquidity compared to Solana’s 6.7%. For institutions, deeper liquidity means greater confidence when launching large financial products.
And as discussed earlier, trust in an ecosystem plays a major role in institutional decision-making. In this context, Solana’s perceived undervaluation may not be about a weaker technical setup. Instead, it’s about institutions still assigning a premium to liquidity depth over pure performance advantages. Final Summary Solana leads in performance, offering faster transactions, lower fees, and higher on-chain activity.
Ethereum leads in institutional trust, with deeper liquidity and stronger confidence attracting major product launches.
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