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Anatoly Yakovenko Says Coinbase-Backed Layer-2 Base Is Solana’s Biggest Competitor – Here’s Why

October 25, 2024

Solana (SOL) co-founder Anatoly Yakovenko says that the project’s biggest competitor is now Coinbase’s Ethereum (ETH) scaling solution.

In a new interview on the Unchained Crypto YouTube channel, Yakovenko says Coinbase’s Base has become Solana’s biggest rival due to the amount of network activity.

“Base is probably the closest competitor now, I would say, when looking at activity. How I break this problem down is … your killer components of PMF (product-market fit) is price, features or content. Ethereum’s weakness was price, and Solana had a killer price that just Ethereum could never get to, just fees to users…

What is unique about Ethereum is the assets issued there. And I think now that’s shifting over somewhat to Solana. One, memecoins are new content being created every day… Base, I think, is the biggest competitor that I think of to the Solana ecosystem.”

He also says that layer-1s Sui (SUI) and Aptos (APT) have gained ground.

“Sui and Aptos also are doing really well. They’ve caught up on features and price. The problem that they have is that Solana had such a huge difference on those from Ethereum. There was a ten order of magnitude improvement. Now the improvements are marginal and not enough to like be the killer part. If you improve Solana’s fees by 100x you might get some weird use cases that go run there but they’re not the major use cases that people care about and then it’s not enough of a differentiator.”

Solana is trading for $178 at time of writing, up 4% in the last 24 hours.

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