Solana’s path to market dominance following the collapse of FTX is reigniting a major debate in the industry. The discussion centers on the balance between decentralization and performance. Analyst Gabriel Shapiro said this sparked a debate and highlighted a deeper shift in values in the crypto market.
Shapir0 noted that Solana’s early success was due to convincing users that transaction speed and cost were more important than decentralization. The project focused on fast and affordable transactions and built a large user base. This success has reshaped what the industry considered essential in blockchain design.
They said that trade-offs such as the need for validators in data centers were not an issue, and that Ethereum was too focused on decentralization at L1 and should be scaled up, even if it meant further centralization.
no. That’s what you said.
I said that what can be achieved through decentralization is…
— toly 🇺🇸 (@aeyakovenko) October 31, 2025
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Central Debate: “Performance First” Strategy vs New Competitors
According to Shapir0, Solana’s resurgence after the FTX impact showed remarkable resilience. This network demonstrated that technical efficiency and strong community engagement can restore credibility.
However, he observed that Solana now faces new strategic challenges. The speed and user experience characteristics that drove its rise are now being adopted by new competitors such as MegaETH and Hyperliquid. These new networks embrace Solana’s “performance-first” strategy, but Solana itself is pivoting to a more decentralized narrative.
Shapir0 suggested that this pivot may not be easy. The marketplace that Solana helped shape now prioritizes ease of use and low fees over governance and validator distribution. Convincing users to care deeply about decentralization can be difficult, especially if competitors continue to push convenience and efficiency. Solana therefore needs to not only educate the market, but also redefine how decentralization equates to performance.
Yakovenko replies, “Decentralization by performance.”
Anatoly Yakovenko, co-founder of Solana Labs, responded by stressing that the network is in no way denying decentralization. He explained that Solana’s goal has always been to achieve decentralization through high-performance systems. He added that decentralization should be measured by objective metrics, not whether validators work from home.
As a result, Solana’s strategy appears to be focused on demonstrating that innovation can coexist with decentralization. The approach aims to balance the two without compromising network integrity or scalability. If successful, Solana could establish a new framework in which decentralization does not lead to performance degradation.
Related: Solana Price Prediction: Derivatives surge ahead of $225 target, resulting in $66 million outflow
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