Swiss banking giant UBS has successfully tested its UBS Key4 Gold product on ZKSync, an Ethereum Layer-2 network.

This move highlights the increasing adoption of blockchain technology by traditional financial institutions seeking efficiency and security.

UBS Integrates ZKSync for Blockchain-Based Gold Trading

On January 31, ZKSync reported that UBS, which manages assets worth $5.7 trillion, is exploring how blockchain can streamline gold investments.

The test focuses on allowing the bank’s Swiss customers to purchase physical gold directly through a blockchain-based system while ensuring scalability, privacy, and interoperability.

UBS Key4 Gold enables retail investors to buy fractional gold shares, offering real-time pricing, deep liquidity, and secure storage. The product operates on the UBS Gold Network, a permissionless blockchain that connects vaults, liquidity providers, and distributors.

To optimize efficiency, UBS leveraged ZKSync’s Validium mode. It’s a zero-knowledge rollup solution that enhances scalability by storing data off-chain.

As part of the proof-of-concept, the bank deployed smart contracts on the Validium testnet to simulate the UBS Gold Network. These contracts facilitated gold token issuance and transaction processing.

“This PoC reflects UBS’ continued efforts to explore how blockchain can enhance its financial offerings and support its broader digital asset strategy. I firmly believe that the future of finance will take place onchain,” wrote Alex Gluchowski, inventor of ZKsync.

The testnet also enhanced privacy by restricting participants’ visibility to their transactions while maintaining verification mechanisms.

Additionally, it allowed stablecoin to merge with Ethereum, making gold token purchases more cost-effective and scalable.

Growing Institutional Interest in Blockchain Solutions

UBS’ test reflects a broader shift toward blockchain adoption in traditional finance (TradFi). The bank has previously explored tokenization by launching an Ethereum-based money market investment fund.

UBS’ Digital Assets Lead Christoph Puhr noted that tokenized securities hold great potential, but scalability, privacy, and interoperability remain hurdles. He highlighted that the ZKSync PoC showcased how Layer-2 networks and zero-knowledge technology can help address these challenges.

“This is another great example of how UBS collaborates with technology providers to stay at the forefront of innovation. Our PoC with ZKsync demonstrated that Layer 2 networks and ZK technology hold the potential to resolve these,” Puhr noted.

According to him, zero-knowledge technology would serve as a catalyst for innovation and provide a robust foundation for tokenized assets, which could accelerate Web3 adoption.

Artificial intelligence continues to be one of the most compelling narratives in the crypto market, driving interest in AI-focused projects. Despite recent corrections driven by the DeepSeek hype, several AI coins are showing bullish potential for February 2025.

Some, like Bittensor (TAO), have maintained their dominance, while others, such as GRIFFAIN and ARC, are closely tied to the crypto AI agents trend. Based on key support, macroeconomic factors, and resistance levels, these five AI coins are worth watching in the coming weeks.

Bittensor (TAO)

TAO is the third-largest artificial intelligence crypto, with a market cap of approximately $3.5 billion. Bittensor is an open-source protocol that aims to build a decentralized machine-learning network powered by blockchain.

TAO is down 18% in the last 30 days, bottoming at $362 on January 23, marking its lowest price since September 2024. This rebound highlights renewed investor interest as the AI crypto sector regains momentum.

If good momentum is back, TAO could test resistance levels at $459 and $495. If AI-driven enthusiasm intensifies, the price may extend to $522.

Conversely, if a strong correction takes place, a key support level at $420 must hold to prevent a potential drop back to $382 or $362.

GRIFFAIN (GRIFFAIN)

GRIFFAIN launched with strong momentum in December, riding the wave of the late 2024 crypto AI agent hype. As one of the hottest trends in the space, it quickly gained attention, fueling speculation and excitement around its potential.

The coin’s price and market cap surged, peaking at nearly $600 million on January 22. However, like other AI cryptos, it faced a steep correction. GRIFFAIN slumped almost 55% in the past week, with its market cap now at $197 million. This sharp decline reflects waning short-term enthusiasm.

If the hype around crypto AI agents returns, GRIFFAIN could rebound, targeting resistance levels at $0.218 and $0.31, with a potential climb to $0.4 or $0.45.

However, if bearish momentum continues, the price may test $0.17 and $0.149, with a risk of falling below $0.1.

AI Rig Complex (ARC)

ARC, like GRIFFAIN, is a Solana-based platform focused on AI agents. It provides frameworks for developers to create lightweight agents. It uses modular technology to develop scalable AI agents. This innovation positioned it as a key player in the AI-driven crypto narrative, attracting significant interest.

The token saw a strong rally, reaching a peak market cap of $622 million on January 22 before entering a sharp correction. Over the past week, its price has dropped 38%, with its market cap now at $221 million.

A death cross recently formed on ARC’s EMA lines, contributing to a 23% drop in just 24 hours. If this bearish trend continues, the price could test support levels at $0.18 and $0.10.

However, a trend reversal could push ARC toward resistances at $0.279 and $0.348, with a potential rally back to $0.46.

Reploy (RAI)

Reploy is an Ethereum-based platform focused on developing LLMs for various applications, including personal chat, image generation, and assistants. Integrated with 40 different protocols, it launched its native token, RAI, at the end of December 2024.

Despite an initial surge that saw RAI peak at $13.2, the token has struggled, dropping 42% over the past 30 days. Its market cap now sits at $36 million, and it is currently trading at its lowest level.

For a recovery, RAI would need strong upward momentum to test resistance at $6.2 and potentially $8. However, without a sustained uptrend, it may continue to face challenges at current price levels.

Cookie DAO (COOKIE)

COOKIE has been hit hard by the recent correction driven by the DeepSeek hype. The token’s price is down 53% in the last 30 days. It is currently trading at its lowest levels ever, struggling to regain momentum.

Unlike GRIFFAIN and ARC, which focus on building AI agents, COOKIE is developing an analytics platform for AI coins, with 1,378 agents tracked.

It offers AI agent indexes that track market cap, attention, sentiment, and other key metrics, positioning itself as a data-driven player in the AI crypto space.

If COOKIE can reverse its downtrend, it could test resistance levels at $0.33 and $0.39. A breakout above those levels could push it toward $0.46, its highest price since January 22.

Solana has experienced exponential growth since it first entered the market as an alternative Layer-1 blockchain. Though the network’s market capitalization is still significantly smaller than Ethereum, its top contender, this gap has shrunk considerably over the years. 

As Solana grows, some wonder whether it will displace Ethereum as the second-largest cryptocurrency behind Bitcoin. In a conversation with BeInCrypto, Juan Pellicer, Senior Research Analyst at IntoTheBlock, said Solana still has to overcome several hurdles before that can occur. 

Following‬‭ Bitcoin,‬‭ Ethereum‬‭ has‬‭ solidified‬‭ its‬‭ position‬‭ as‬‭ a‬‭ leading‬‭ cryptocurrency,‬‭ pioneering‬‭ the‬‭ concept‬‭ of‬‭ smart‬‭ contracts‬‭ and‬‭ establishing‬‭ itself‬‭ as‬‭ the‬‭ dominant‬‭ platform‬‭ for‬‭ decentralized‬‭ applications.‬‭ 

However,‬‭ Ethereum’s‬‭ dominance‬‭ has‬‭ been‬‭ challenged‬‭ by‬‭ the‬‭ emergence‬‭ of‬‭ competitors‬‭ like‬‭ Solana,‬‭ which‬‭ entered‬‭ the‬‭ market‬‭ in‬‭ March‬‭ 2020‬‭ as‬‭ an‬‭ alternative‬‭ layer-1‬‭ blockchain‬‭ network.

While‬‭ Ethereum‬‭ maintains‬‭ a‬‭ significant‬‭ market‬‭ capitalization‬‭ advantage‬‭ over‬‭ Solana,‬‭ this‬‭ advantage‬‭ has‬‭ notably‬‭ shrunk‬‭ over‬‭ the‬‭ years.‬‭ 

Since its launch in March 2020, Solana’s market capitalization reached its first peak in November 2021, when it reached $72.4 billion. One week ago, the token surpassed the $100 billion mark, reaching a new all-time high. 

At the time of writing, Ethereum’s market cap is $392 billion. While its advantage over Solana is significant, some have begun to wonder how long Solana needs to surpass Ethereum. 

As the network exceeds key‬‭ metrics‬‭ like‬‭ daily‬‭ active‬‭ users,‬‭ daily‬‭ transactions,‬‭ and‬‭ the‬‭ number‬‭ of‬‭ new‬‭ addresses‬‭ created‬‭ monthly‬‭, some say 2025 will be the year Solana takes the second-place trophy. 

Though Solana’s success is impressive, according to Pellicer, it still lacks what it takes to overthrow Ethereum. 

“While‬‭ Solana‬‭ may‬‭ continue‬‭ to‬‭ grow‬‭ and‬‭ potentially‬‭ challenge‬‭ Ethereum‬‭ in‬‭ specific‬‭ niches,‬‭ overcoming‬‭ Ethereum’s‬‭ entrenched‬‭ position‬‭ as‬‭ the‬‭ dominant‬‭ platform‬‭ in‬‭ the‬‭ immediate‬‭ future‬‭ is‬‭ still‬‭ unlikely,‬‭ though‬‭ the‬‭ competitive‬‭ landscape‬‭ is‬‭ dynamic and evolving,” he said. 

Pellicer considered many factors before coming to that conclusion.

High Throughput and Low Transaction Costs Maintain Solana’s Competitiveness

‭Solana and Ethereum boast particular strengths that, in turn, attract different audiences. 

Ethereum’s‬‭ continued‬‭ dominance‬‭ is‬‭ largely‬‭ due‬‭ to‬‭ its‬‭ established‬‭ trust,‬‭ widespread‬‭ adoption,‬‭ and‬‭ ongoing‬‭ development‬‭ efforts.‬‭ As‬‭ the‬‭ first‬‭ platform‬‭ to‬‭ enable‬‭ the‬‭ development‬‭ of‬‭ decentralized‬‭ applications,‬‭ Ethereum‬‭ continues‬‭ to‬‭ lead‬‭ the‬‭ market,‬‭ powering‬‭ most‬‭ decentralized finance (DeFi)‬‭ projects‬‭ and‬‭ hosting‬‭ major‬‭ non-fungible token (NFT)‬‭ marketplaces.

“‬‭Ethereum’s‬‭ infrastructure‬‭ is‬‭ unmatched‬‭ in‬‭ economic‬‭ security,‬‭ maintaining‬‭ a‬‭ flawless‬‭ uptime‬‭ record‬‭ since‬‭ inception,‬‭ which‬‭ fosters‬‭ unparalleled‬‭ trust‬‭ for‬‭ institutional‬‭ and‬‭ high-value‬‭ applications.‬‭ Its‬‭ DeFi‬‭ ecosystem‬‭ remains‬‭ the‬‭ most‬‭ mature,‬‭ with‬‭ pioneering‬‭ protocols‬‭ setting‬‭ industry‬‭ standards,‬‭ though‬‭ competitors‬‭ like‬‭ Solana‬‭ are‬‭ rapidly closing the gap with faster, cheaper alternatives,” Pellicer told BeInCrypto. 

Solana’s competitive edge comes from its high throughput and low transaction costs. The network uses two consensus mechanisms: Proof-of-History (PoH) and Proof-of-Stake (PoS). 

The combination of PoS and PoH allows individual nodes to validate the entire blockchain using only a small piece of information. This is possible because PoH creates a verifiable history of transactions, which means a node doesn’t need to be constantly connected to the network to verify its validity. In turn, transaction speeds are much faster.

Originally running on a Proof-of-Work (PoW) consensus mechanism, Ethereum transitioned to PoS in September 2022. Regardless, the network often suffers from congestion and slow transaction speeds.

While‬‭ Ethereum‬‭ can only process‬‭ around‬‭ 15‬‭ transactions‬‭ per‬‭ second,‬‭ Solana‬‭ can handle over 2,600‬‭.

“This‬‭ results‬‭ in‬‭ a‬‭ smoother‬‭ user‬‭ experience,‬‭ particularly‬‭ for‬ high-frequency‬‭ applications‬‭ and‬‭ retail‬‭ users.‬‭ This‬‭ technological‬‭ differentiation,‬ coupled‬‭ with‬‭ effective‬‭ marketing‬‭ and‬‭ a‬‭ vibrant‬‭ ecosystem‬‭ of‬‭ applications‬‭ focused‬‭ on‬‭ speed‬‭ and‬‭ affordability,‬‭ has‬‭ fueled‬‭ Solana’s‬‭ rapid‬‭ growth‬‭ and‬‭ market‬‭ cap‬‭ increase,‬‭ attracting‬‭ users‬‭ and‬‭ projects‬‭ seeking‬‭ alternatives‬‭ to‬‭ Ethereum’s‬‭ higher‬‭ gas‬‭ fees‬‭ and‬‭ slower transaction finality,” Pellicer explained. 

‭However, Ethereum has other advantages that outweigh Solana’s speed.

Ethereum Excels in DeFi

Since its launch in 2015, Ethereum has become a widely used blockchain platform for developers and enterprises.

The platform’s smart contract functionality has enabled the creation of numerous decentralized applications (dApps), contributing to the growth of ecosystems focused on DeFi, gaming, and NFTs. 

Today, Ethereum’s DeFi total value locked (TVL) stands at nearly $124 billion.

“This‬‭ creates‬‭ deep‬‭ liquidity,‬‭ robust‬‭ infrastructure,‬‭ and‬‭ a‬‭ rich‬‭ ecosystem,‬‭ making‬‭ it‬‭ difficult‬‭ for‬‭ newer‬‭ platforms‬‭ like‬‭ Solana‬‭ to‬‭ replicate‬‭ quickly.‬‭ This‬‭ entrenched‬‭ network‬‭ effect‬‭ provides‬‭ Ethereum‬‭ with‬‭ significant‬‭ inertia‬‭ and‬‭ competitive‬‭ advantage,‬‭ as‬‭ users‬‭ and‬‭ developers‬‭ benefit‬‭ from‬‭ the‬‭ existing‬‭ infrastructure,‬‭ community‬‭ support,‬‭ and‬‭ established protocols within the Ethereum ecosystem,” Pellicer said.

A strong driver behind Ethereum’s solid developer base is its use of Solidity as its base programming language. 

Solidity is a language specifically designed for smart contracts and the Ethereum Virtual Machine (EVM). It benefits from a mature ecosystem, extensive tooling, and a large pool of already proficient developers. 

Solana’s core programming language is Rust. This system offers advantages in terms of rapid performance rates and overall safety. 

“While‬‭ Rust‬‭ offers‬‭ advantages‬‭ in‬‭ terms‬‭ of‬‭ execution‬‭ speed‬‭ and‬‭ security,‬‭ it‬‭ has‬‭ a‬‭ steeper‬‭ learning‬‭ curve‬‭ and‬‭ a‬‭ smaller‬‭ developer‬‭ community‬‭ within‬‭ the‬‭ blockchain‬‭ space‬‭ compared‬‭ to‬‭ Solidity.‬‭ This‬‭ difference‬‭ can‬‭ impact‬‭ developer‬‭ adoption‬‭ rates‬‭ and‬‭ the‬‭ types‬‭ of‬‭ applications‬‭ built,‬‭ with‬‭ Ethereum‬‭ attracting‬‭ a‬‭ broader‬‭ range‬‭ of‬‭ developers‬‭ initially,‬‭ while‬‭ Solana‬‭ may‬‭ appeal‬‭ to‬‭ those‬‭ focused‬‭ on‬‭ performance-critical applications and those already familiar with Rust,” Pellicer added.

Ethereum also remains the preferred network for users who prioritize decentralization before speed.

Solana Centralization Concerns

Solana’s validator node requirements, which demand significant hardware investments, can create barriers to entry, potentially leading to a concentration of power within the network among those capable of affording the necessary infrastructure.

While Solana currently has around 2,000 active validators, Ethereum passed the one million benchmark last year– the largest number recorded by any blockchain network. Though Solana’s reliance on this type of hardware expedites the network, this has raised concerns about whether this high-efficiency rate comes at the cost of decentralization. 

During last October’s Token2049 conference, whistleblower Edward Snowden gained attention for bringing up this point.

Speaking through a video link, Snowden raised concerns that Solana’s focus on speed and efficiency comes at the cost of decentralization, which he sees as essential for keeping blockchain technology trustworthy. He also said that it makes the network more susceptible to government interference.

His comments reflected doubts shared by many crypto community members.

“Solana‬‭ faces‬‭ valid‬‭ concerns‬‭ regarding‬‭ centralization‬‭ due‬‭ to‬‭ its‬‭ validator‬‭ hardware‬‭ requirements‬‭ and‬‭ relatively‬‭ smaller‬‭ validator‬‭ set,‬‭ which‬‭ could‬‭ potentially‬‭ lead‬‭ to‬‭ network‬‭ control‬‭ by‬‭ fewer‬‭ entities.‬ While‬‭ Solana‬‭ prioritizes‬‭ performance‬‭ at‬‭ a‬‭ potentially‬‭ higher‬‭ centralization‬‭ trade-off,‬‭ Ethereum‬‭ prioritizes‬‭ decentralization‬‭ and‬‭ security,‬‭ now‬‭ with‬‭ improved‬‭ energy‬‭ efficiency‬‭ and‬‭ ongoing‬‭ scalability‬‭ enhancements,” Pellicer said. 

For Solana to become more competitive, it will need to address these risks. 

What Solana Needs to Surpass Ethereum

Solana would have to take several significant steps to surpass Ethereum regarding market share and influence. According to Pellicer, it would need to overcome four specific hurdles.

“Firstly,‬‭ achieving‬‭ parity‬‭ or‬‭ surpassing‬‭ Ethereum‬‭ in‬‭ developer‬‭ adoption‬‭ is‬‭ crucial,‬‭ requiring‬‭ significant‬‭ investment‬‭ in‬‭ developer‬‭ tooling‬‭ and‬‭ community‬‭ building.‬‭ Secondly,‬‭ Solana‬‭ needs‬‭ to‬‭ cultivate‬‭ truly‬‭ innovative‬‭ and‬‭ unique‬‭ DeFi‬‭ applications‬‭ that‬‭ differentiate‬‭ it‬‭ beyond‬‭ speed‬‭ and‬‭ cost‬‭ advantages.‬‭ Thirdly,‬‭ addressing‬‭ centralization‬‭ concerns‬‭ and‬‭ demonstrating‬‭ long-term‬‭ network‬‭ stability‬‭ and‬‭ resilience‬‭ are‬‭ vital‬‭ for‬‭ attracting‬‭ institutional‬‭ capital‬‭ and‬‭ broader‬‭ trust.‬‭ Finally,‬‭ Solana‬‭ would‬‭ need‬‭ to‬‭ capture‬‭ emerging‬‭ market‬‭ segments‬‭ or‬‭ use‬‭ cases‬‭ where‬‭ Ethereum‬‭ is‬‭ less‬‭ dominant to carve out a truly leading position,” he said. 

‭Solana has previewed upcoming products that are scheduled for launch this year. Among them is the Solana Seeker, an Android-powered smartphone designed for Web3 applications. This device offers enhanced functionality and design for users interacting with the Solana ecosystem, including managing crypto assets.

Meanwhile, Solana’s upcoming Firedancer validator client is designed to improve network stability and transaction processing. Its distinct codebase offers greater resilience against widespread outages and is expected to enhance Solana’s performance.

In the United States, there is widespread anticipation over the potential launch of a Solana spot exchange-traded fund (ETF). How significantly these initiatives will contribute to increased network adoption remains to be seen. 

Scalability Continues to be Ethereum’s Achilles Heel

Ethereum must address its points of contention to maintain its dominance over the crypto market. Scalability remains a central challenge.

The network’s current architecture, which can only handle a limited number of transactions per second, limits its ability to accommodate users’ increasing demand. Users tend to experience intense network congestion, which results in slower transaction times and increased fees for those interacting with dApps on the network. 

Ethereum has developed a Layer-2 ecosystem to reduce congestion in response to these issues. However, these solutions have received criticism for causing user fragmentation.

“Ethereum‬‭ must‬‭ continue‬‭ to‬‭ innovate‬‭ and‬‭ successfully‬‭ roll‬‭ out‬‭ its‬‭ scaling‬‭ solutions‬‭ to‬‭ maintain‬‭ its‬‭ competitive‬‭ advantage.‬‭ It‬‭ needs‬‭ to‬‭ ensure‬‭ its‬‭ Layer-2‬‭ ecosystem‬‭ becomes‬‭ seamless‬‭ and‬‭ user-friendly,” Pellicer told BeInCrypto. 

Also, safeguarding and expanding the aspects that already make Ethereum so competitive will prove essential to maintain its edge over other networks.

“‬‭For‬‭ Ethereum,‬‭ sustained‬‭ success‬‭ hinges‬‭ on‬‭ the‬‭ successful‬‭ scaling‬‭ of‬‭ its‬‭ ecosystem‬‭ through‬‭ Layer-2‬‭ solutions,‬‭ continued‬‭ innovation‬‭ in‬‭ DeFi‬‭ and‬‭ broader‬‭ application‬‭ areas,‬‭ and‬‭ maintaining‬‭ its‬‭ strong‬‭ developer‬‭ community,” he added.

Though Pellicer doesn’t expect Solana to surpass Ethereum anytime soon, the increasing stakes between competing networks is a good sign. 

“Ultimately,‬‭ increased‬‭ competition‬‭ and‬‭ the‬‭ rise‬‭ of‬‭ a‬‭ strong‬‭ alternative‬‭ platform‬‭ like‬‭ Solana‬‭ could‬‭ be‬‭ beneficial‬‭ for‬‭ the‬‭ broader‬‭ crypto‬‭ ecosystem,‬‭ fostering‬‭ innovation‬‭ and‬‭ driving‬‭ adoption‬‭ by‬‭ offering‬‭ users‬‭ more‬‭ choices‬‭ and diverse functionalities,” Pellicer said.

Whether Solana can continue climbing the ranks will only be answered in time.