- Ethereum is losing developer interest as builders migrate to Solana, drawn by better startup support and a smoother user experience.
- To stay competitive, Ethereum must shift its strategy toward funding real product development and simplifying its ecosystem.
Ethereum, the long-reigning titan of decentralized applications, is facing an unexpected challenge: a developer exodus to Solana. At the heart of this shift lies a growing discontent with Ethereum’s reliance on hackathons and a perceived lack of structural support for real product development.
Jacob Franek, co-founder of the Alliance crypto accelerator, minced no words when he criticized Ethereum’s current strategy. “If the Ethereum community wants to reverse this trend, it needs to support great builders building apps,” he urged, emphasizing that hackathons rarely yield high-impact innovations.
Solana Gains Ground with Startup Support
In contrast, Solana has doubled down on builder-focused initiatives. Its ecosystem provides robust startup support and a smoother user experience, rapidly becoming a favorite among Web3 founders. According to QwQiao of Alliance DAO, Solana now matches Ethereum in startup application numbers—and momentum is tipping in Solana’s favor.
A recent chart shared by QwQiao revealed a significant shift: Solana now accounts for about 35% of startup applications to Alliance, up from under 10% in 2021. Meanwhile, Ethereum has fallen from 50% to approximately 30%, reflecting a changing perception of where innovation truly lives.
Ethereum’s Identity Crisis and Urgent Fixes
This developer migration also comes at a time when Ethereum is grappling with an identity crisis. Once positioned as the “world computer,” it now leans into being a deflationary store of value, losing its cohesive narrative.
Franek calls for urgent structural changes—more funding for accelerators, ecosystem VCs, and a shift away from abstract research. He also critiques Ethereum’s Layer 2 friction and pushes for aggressive L1 scaling. “UI and onboarding have to be stupidly simple,” he warns, echoing decades of Web2 lessons.
Price Snapshot and the Road Ahead
At the time of writing, Ethereum (ETH) trades at $1,824.19 (+0.5%), while Solana (SOL) sits at $149.38 (-0.74%). Though the market remains competitive, the real battle is for developer mindshare—and Solana is winning ground fast.
Ethereum’s future may depend on its ability to evolve beyond hackathons and embrace a builder-first mindset. With Solana rising through better UX and strategic startup support, the pressure is on Ethereum to reclaim its role as the innovation hub of Web3.
