BlackRock has chosen Ethereum over Solana for the launch of its tokenized money market fund, despite Solana's superior transaction speed and lower fees. Solana recently processed 696 million transactions in a week, surpassing all other blockchains combined, and offers transaction fees nearly 100% lower than Ethereum's. However, BlackRock's decision highlights the importance of liquidity and institutional trust, as Ethereum holds over 50% of on-chain liquidity compared to Solana's 6.7%.
The move underscores a preference for Ethereum's credibility and liquidity depth, which are crucial for institutions launching large financial products. While Solana excels in performance metrics, Ethereum's established trust and liquidity continue to attract major institutional interest.
BlackRock Selects Ethereum Over Solana for Money Market Fund Launch
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