Ethereum versus Solana: Which L1 captures more value?

ARK Invest digital asset researcher Lorenzo Valente compared Ethereum, Solana and Hyperliquid with three U.S. restaurant businesses on Sept. 3, arguing that their different operating structures require separate valuation frameworks. Summary ARK researcher Lorenzo Valente compared Ethereum, Solana and Hyperliquid through three contrasting restaurant business models. Ethereum uses layer two networks for scaling while collecting relatively limited settlement fees today overall. Solana processes applications within one integrated environment, keeping execution fees closer to validators and holders. Hyperliquid channels most eligible trading fees toward HYPE purchases through its Assistance Fund mechanism automatically. Valente said each architecture requires separate valuation methods because revenue paths and risks differ materially. In an essay, Valente likened Ethereum to McDonald’s, Solana to Chipotle and Hyperliquid to In-N-Out. The comparisons address how each blockchain expands, controls its infrastructure and directs revenue toward its native asset. Valente argued that Ethereum operates like a franchise network because independent layer 2 teams build their own systems while rel...