BlackRock BUIDL expands into Solana – Is this what SOL needs to beat ETH?

• BlackRock expands its blockchain-based BUIDL fund to Solana for lower costs and faster transactions.
• Solana outperforms Ethereum in key metrics, with analysts predicting its dominance into 2025.

BlackRock, the world’s largest asset manager, is strengthening its foothold in the crypto sector by expanding its blockchain-based money market fund to Solana [SOL].

BlackRock’s BUIDL expansion

In collaboration with its technology partner Securitize, BlackRock has introduced a new share class of the BlackRock USD Institutional Digital Fund (BUIDL) on SOL’s network.

This move comes a year after the fund’s initial launch and highlights BlackRock’s continued push into tokenized finance.

By integrating BUIDL into Solana’s ecosystem, investors can now leverage the network’s low transaction costs and instant settlement capabilities.

Execs weigh in

Remarking on the same, Carlos Domingo, Co-founder and CEO of Securitize, said, 

“As the market for RWAs and tokenized treasuries gains momentum, expanding BUIDL to Solana—a blockchain known for its speed, scalability, and cost efficiency—is a natural next step.” 

Adding to the fray was Lily Liu, President of the Solana Foundation, who noted, 

“Solana is uniquely positioned to drive the next wave of adoption for tokenized real-world assets due to the network’s speed, low costs and active developer ecosystem. Blackrock’s expansion of BUIDL on Solana offers users a network that balances innovation with the operational efficiency the industry demands.”

Is Ethereum losing ground against Solana?

BlackRock’s expansion of its BUIDL fund to Solana comes amid a significant increase in its Ethereum [ETH] holdings, which have surged to a record $1.145 billion.

In fact, Kyle Samani, co-founder and managing partner of Multicoin Capital, recently reinforced his bullish outlook on SOL in an interview with Frank Chaparro.

On the other hand, Samani also raised critical concerns about ETH’s roll-up-centric scaling approach, questioning its long-term viability.

His remarks reflect the ongoing debate between Solana and Ethereum among industry leaders and who is going to outpace the other.  

Solana vs. Ethereum

That being said, Solana’s dominance over Ethereum remains evident across key metrics such as DEX trading volume, user activity, and transaction fees.

While its fee advantage briefly narrowed in February, Solana has consistently maintained a multi-million-dollar lead since early January.

Seeing this, analysts at Delphi Digital predict that this trend could extend into 2025, positioning SOL as the top Layer 1 blockchain.

Additionally, on the price front, SOL continues to outperform, recently rising 3.83% to $144.51, while ETH saw a modest 0.87% increase to $2,069.30.

Therefore, with strong momentum and sustained growth, Solana’s competitive edge over Ethereum appears poised to strengthen further.