Monolithic blockchains — networks that combine different layers into a single, unified architecture — outperformed in September, according to VanEck’s latest “Crypto Monthly Recap.”
The report cited Solana (SOL), Sui (SUI) and Aptos (APT) price gains of 14%, 118% and 23%, respectively.
Sui’s performance was attributed to a 140% gain in daily active addresses during September, resulting in the digital asset crossing a $5-billion market capitalization.
VanEck’s researchers also noted Aptos’ recent Raptr software upgrade as the main driver behind the network’s 30% month-over-month gains in daily active addresses.
Daily active address counts for Solana, Sui, and Aptos between January 2024 and September 2024. Source: VanEck
Related: Solana may hit $330 and reach 50% of ETH market cap — VanEck research
Monolithic blockchains, the Ethereum killers?
Monolithic blockchains exhibit significantly higher throughput than modular blockchains due to more efficient structures. Earlier in 2024, Pantera Capital characterized Solana as the MacOS of blockchains because of the deliberate decision to build a “vertically integrated” protocol.
The venture capital firm likened Solana’s approach to Apple’s strategy of in-house development of both the software and hardware components of its platforms.
The higher throughput and cheaper transaction costs on blockchains like Solana and Sui make these monolithic chains attractive platforms for smaller payments, asset tokenization and minting non-fungible tokens (NFTs).
A recent report from Sygnum Bank highlighted Solana’s viability as a payment network and the potential for the layer-1 blockchain to “seriously challenge” Ethereum’s dominance.
Ethereum’s price action. Source: TradingView
VanEck’s previous report noted the significant reduction in fees and transaction times from newer layer-1 competitors as factors eroding Ethereum’s market share.
The researchers revealed that market speculation is currently the main use case for public blockchains. They explained that lower transaction costs provided by higher throughput layer-1 blockchains incentivize users to migrate from Ethereum.
The asset manager also found that this migration is partially responsible for Ethereum’s poor price performance during much of 2024.
Ethereum’s price sank by 12% between Oct. 1 and Oct. 3. The digital asset has been trading well under its 200-day exponential moving average (EMA) — a critical, dynamic level of support — since August 2024.
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