SOL vs ETH + L2s (Patreon)

This comparison above demonstrates:

• Higher Capital Efficiency: $2.81 per $1 of TVL compared to $0.30 for Ethereum and its L2s.

• Significant Trading Volume: Solana’s volume is 40% of Ethereum and its L2s combined.

• Lower FDV: Solana’s FDV is much lower than that of Ethereum and its L2s, suggesting potential undervaluation.

Capital efficiency is a measure of how effectively the capital locked in the blockchain is being utilized. It is calculated as the ratio of 7-day DEX volume to TVL.

• Solana: $2.81 volume per $1 of TVL

• Ethereum: $0.20 volume per $1 of TVL

• Total (Ethereum + L2s): $0.30 volume per $1 of TVL

Solana’s capital efficiency is significantly higher than Ethereum and its L2s. This means that for every dollar locked in Solana, it generates $2.81 in trading volume, compared to only $0.30 for Ethereum and its L2s.

Volume and FDV Comparison

• Volume: Solana’s trading volume represents 40% of the combined volume of Ethereum and its L2s.

• FDV: Ethereum and its L2s have a combined FDV that is approximately 4.39 times larger than Solana’s FDV.

Not only a far faster horse, but also far cheaper .