XRP vs Solana: Can XRP or SOL Surpass Ethereum in 2025?

The blockchain space is buzzing with the future of emerging platforms like Solana and XRP as potential challengers to Ethereum’s long reign. Ethereum has long been the second-largest cryptocurrency after the king of cryptocurrencies, Bitcoin.

Ethereum serves as the backbone of decentralized applications (dApps), self-executing smart contracts, and decentralized finance (DeFi) platforms. Both Solana and XRP are positioned for significant growth, driven by expanding use cases and increasing adoption.

In this article, we will do a detailed comparison between Solana and XRP. We will also understand whether any of them is capable of overshadowing Ethereum.

Understanding Ethereum’s Dominance

Ethereum is providing developers with a platform to build decentralized applications in the smart contracts space. However, it suffers from high gas fees and scalability issues due to its proof-of-stake (PoS) mechanism. 

While Ethereum emphasizes on its Layer 2 solutions, its competitors like Solana and XRP offer faster‌ and more cost-efficient alternatives, which pose a potential threat. 

Solana: High-Speed Blockchain

Solana utilizes a unique proof-of-history (PoH) mechanism combined with proof-of-stake (PoS), which allows it to process up to 65,000 transactions per second (TPS). It is also known for its lightning-fast transactions and low fees. Unlike Ethereum’s 30 TPS, Solana is much faster.

Strengths

• Scalability: Solana PoH ensures that the transaction occurs fast.
• Low Fees: Ethereum is plagued with high gas fees, but Solana’s transaction costs remain under a cent.
• DeFi and NFT Growth: Solana is gaining traction in DeFi and non-fungible tokens (NFTs) as it attracts developers and users.
• Solid Ecosystem: Solana is rapidly growing due to large-scale investors and more dApps implementation.

 Challenges

• Network Stability: Solana has suffered from multiple network outages, raising concerns about its reliability. One such incident was witnessed during the launch of the TRUMP meme coin.

• Centralization Risks: Validators require high-end hardware, making decentralization a major factor. Although decentralized, the network’s validator distribution is still questioned.

XRP: Banking and Payment Giant

XRP was created by Ripple Labs and is known for its fast and cost-efficient cross-border payments. Compared to Ethereum, which focuses on DeFi and smart contracts, XRP pays attention to institutions, positioning itself as a strong contender for mainstream adoption. 

Recently, XRP broke the records after reaching above the price mark of $3 in a bullish momentum. Currently, XRP price stands at $2.27 with a market cap at $133.22 billion-  which is significantly lower than that of Ethereum which is $216 billion at the time of writing. 

Strengths

• Transaction Speed: XRP transactions settle between 3 and 5 seconds, compared to Ethereum’s 10-15 seconds (or even longer during congestion).
• Lower Fees: Compared to other platforms, XRP is an excellent option to be used for making payments because of its lower fees feature.
• Bank Acceptance: XRP has been adopted by large banks that enhances its liquidity and credibility in the market.

Challenges

• Regulatory Issues: XRP has been facing regulatory challenges when it comes to providing clarity and global financial system integration. 

• Limited Smart Contract Functionality: XRP’s functionality is limited because it does not have the same extensive smart contract capabilities as Ethereum or Solana. However, Ripple is actively looking to introduce XRP smart contracts. 

Developments in Ethereum, Solana, and XRP Ecosystem 

Lately, various upgrades and developments seen in these blockchains to enhance their functions and benefits.

Ethereum’s Ongoing Upgrades

Ethereum has just finalized the Dencun update to improve scalability and reduce costs for Layer 2 networks. It is expected that with this successful upgrade, Ethereum will see efficient data storage and transaction processing. However, with continuing scalability issues, users are moving to speedier and cheaper chains like Solana.

Solana’s Rapid Growth

In the beginning of 2025, Solana’s DeFi (total value locked) TVL has increased significantly and surpassed $10 billion. Large-scale NFT initiatives migrated from Ethereum to Solana since it is relatively cheaper.

Business payment solutions such as Visa, in 2023, published a document on exploring Solana for making payments. This makes it a valuable component in managing everyday cash flow. In February 2025, Taurus launched a Solana-based custody and tokenization platform for banks. This is aimed at using Solana to solve real-world tokenized asset problems. 

XRP’s Market Recovery 

Earlier, the U.S. Securities and Exchange Commission (SEC) sued Ripple for breaching laws by selling XRP without first registering it with the agency. The more than three years long lawsuit has affected investor confidence. But now, the SEC has dropped its appeal on March 19. 

On April 16, 2025, the U.S. appellate court granted a joint motion over the long battle between Ripple Labs and the SEC. This has fuelled optimism over XRP exchange-traded funds (ETFs). The move is expected to give a boost to XRP.

RippleNet is increasingly used to transfer money internationally. It is used by banks in Japan and the UAE to make cross-border payments. 

Comparison between Solana, XRP, and Ethereum

If we look at Ethereum, Solana, and XRP- Ethereum boasts the largest community of developers and majority of projects. Ethereum stands as the second largest blockchain after Bitcoin in terms of its market capitalization. Solana is quicker and low-cost but is beneficial to other types of applications. XRP is unique as it is geared to assist financial institutions rather than decentralized applications.

Ethereum is the leading blockchain for smart contracts creation but is not ideal for day-to-day use due to its expensive gas fees. Solana solves the gas fees issue with its rapid transaction processing, however, has concerns regarding the stability of its network. XRP is ideal for making payments but lacks the same level of flexibility as Ethereum and Solana for DeFi and NFT use.

Solana plays a significant role in the world of decentralized finance and non-fungible tokens as it makes a network more secure. If more developers begin to use Solana, then it may gain many users from Ethereum blockchain. Ethereum is already in the process of making upgrades on scalability, which would help it retain the position. 

XRP is likely to outperform Ethereum if banks and financial institutions adopt it while XRP outshines it as a great choice for cross-border payments. Moreover, the recent approval of XRP Futures ETF also marks a milestone that puts it in close competition with Ethereum. Nevertheless, without smart contracts, it will struggle to outpace Ethereum in decentralized applications.

Can Solana or XRP Surpass Ethereum?

It seems that not even a single blockchain comprises all the features to dominate the ecosystem. Ethereum, Solana, and XRP provide different use cases, technology, and have their own market. Hence, they all are believed to coexist, offering unique properties for different applications. 

Ethereum will remain the top option for DeFi and smart contracts. Solana could be more suitable for rapidly deployed decentralized apps. And, XRP could be a frequently opted alternative for cross-border transactions. 

There are high chances that Solana and XRP may compete and stand in strong competition with Ethereum, but at this moment, it doesn’t look like they are in a position to overshadow it. Ethereum has a solid base that continues to revamp. 

Conclusion

The blockchains such as Solana and XRP are rapidly developing and gaining attention in the blockchain ecosystem and cryptocurrency market. They are gradually becoming a competition to Ethereum but currently, not in a position to  surpass it.  

Ethereum has launched its Ethereum 2.0 to solve its high gas fees issue. Solana is fast and quick when making transactions, and XRP specializes in its cross-border banking.  

Also Read: XRP vs Pi: Comparison between Proven and Newcomer Crypto