June 13, 2024

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Ethereum News Today: Is Solana’s Anti-MEV Move ‘Overrated’?

Ethereum News Today: Is Solana’s Anti-MEV Move ‘Overrated’?
  • Solana’s crackdown on MEV auditors has attracted mixed reviews.
  • Ethereum has also faced criticism for its stated strict stance against memecoins.

the Solana [SOL] against. Ethereum [ETH] It seems that the news, which has made many cryptocurrency headlines over the past week, is far from over.

Over the weekend, controversy between two leading tier-one alternative blockchains resurfaced after Solana clamped down on validators with MEV (maximum extractable value).

In the fight against MEV, the Solana Foundation reportedly withdrew financial support from validators who were involved in the same.

But the core Ethereum developer, Ryan BerkmansHe downplayed the move and described Solana as “not a serious settler class.”

“Now, the next step in their plan to dissolve MEV was to withdraw financial support from auditors who mine MEV 😆. Solana is not a dangerous settler class.

For the uninitiated, MEVs are essentially profit strategies that are maximized by validators by rearranging, excluding, or including transactions in the block.

Is Solana’s opposition to MEV good or bad?

Whether or not the anti-MEV update is great is up for debate.

For his part, Lukas Broder, CEO of Jito Labs, a Solana-based MEV infrastructure provider, defended the Solana Foundation’s move, It helps,

‘The Solana Foundation is a contributor to the network. Stakeholders must want to see the network succeed. Why would they support something that makes the network less likely to succeed?

The executive added that this step aims to protect Solana’s largest user base, Meme coin Merchants.

“Most of the activity on Solana is memecoin trading, so if you screw up the main user base of block space, they will leave, and we will all be sitting here with less usage wondering why we didn’t do anything.”

Interestingly, Anatoly Yakavenko, co-founder of Solana, also supported the anti-MEV move as a great way to “respond to the needs of the user (coin traders).”

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However, Berkmans claimed The move was Solana’s protection for meme traders to maintain “competitiveness” against ETH and ETH L2s.

I think this story writes itself. The SOL/ETH ratio significantly overstates Solana’s robustness as a serious competitor to ETH L1 or our best L2s.’

The indicated SOL/ETH ratio tracks the performance of the SOL price chart relative to ETH. The ratio has been rising since October 2023 but recorded a slight decline after the surprise introduction of the ETH ETF in May.

This means that SOL has been outperforming ETH on price charts since last year, but this may change.

Ethereum News

Source: SOL/ETH ratio, TradingView

More Solana vs Ethereum news

In a separate development last week, amid a debate between Iggy Azalea and Vitalik Buterin over celebrity coins, Wintermute CEO Evgeny Givoy advertiser That ETH may fail because of the “ETH elite” and not because of Solana.

“If ETH fails in the future, it will not be because “Solana is faster,” it will be because the “elite” of ETH are still stuck in a massive contradiction.”

Notably, Gaevoy’s reaction was based on Buterin and Uniswap founder’s position that memes should be for the greater social good and not for purely financial gain.

In other words, Solana positioned itself as a cryptocurrency trader and launcher, while ETH took the opposite approach.