Ethereum Faces Developer Shift to Solana as Calls Grow for Strategic Overhaul
Ethereum at a Crossroads as Builders Migrate Toward Solana’s Streamlined Ecosystem
Ethereum, long regarded as the backbone of decentralized application (dApp) development, is now facing a critical inflection point. As competing blockchain Solana gains momentum, experts are warning that Ethereum’s current strategy—particularly its reliance on hackathons—may be costing it the next generation of builders.
Jacob Franek, co-founder of the Alliance crypto accelerator, has been vocal about the growing concern. In his view, Ethereum's overemphasis on hackathons is not producing the kind of foundational innovations needed to maintain its leadership.
“If the Ethereum community wants to reverse this trend, it needs to support great builders building apps,” Franek stated bluntly.
He argues that small cash prizes and short-term events aren't sufficient to foster impactful projects. “$5,000 prizes don’t fund world-changing companies,” he added, highlighting the need for more substantial support mechanisms.
Solana Gains Ground
Meanwhile, Solana has been actively courting Web3 developers by shifting its focus toward long-term startup support and usability. This approach appears to be working.
Data from Alliance DAO shows a striking change: startup applications in its programs now show Solana and Ethereum nearly tied, with Solana slightly ahead at 35% compared to Ethereum’s 30%. This marks a dramatic reversal from 2021, when Ethereum held a commanding 50% share and Solana was in the single digits.
Supporting this trend is Solana’s recent leap over Ethereum in staking market cap—a key signal of investor confidence and network engagement. The implication is clear: developers and users alike are increasingly aligning with Solana's speed, simplicity, and growing infrastructure.
“Users hate friction. UI and onboarding have to be stupidly simple,” Franek emphasized, pointing to the importance of user experience—an area where Solana has made substantial progress.
Rethinking Ethereum’s Identity and Ecosystem Support
Ethereum’s challenges go beyond builder engagement. The network’s shifting narrative—from the "world computer" to a deflationary store of value—has created confusion about its long-term mission.
Franek and other critics argue that Ethereum needs to realign its focus. He suggests redirecting resources from theoretical research to tangible, product-focused investments such as accelerators, incubators, and venture support funds.
Another issue lies in Ethereum’s Layer-2 fragmentation. The current lack of seamless composability across scaling solutions creates development barriers that push builders elsewhere. Franek calls for more aggressive scaling at the Layer-1 level and better integration across layers to reduce these friction points.
The Road Ahead
Ethereum's standing in the crypto landscape remains formidable, but its future dominance is no longer guaranteed. If it hopes to remain the hub for innovation in decentralized technologies, it must adapt—quickly and strategically.
With rising competition and shifting developer sentiment, the message from the community is becoming clearer: Ethereum needs to evolve, not just technically, but structurally, to remain the go-to ecosystem for the next wave of Web3 builders.