The Solana network can easily exceed Ethereum with the total staked value of their native tokens, Sol and ETH, which releases a debate if it is really bullish or bearish for Solana.
More than $ 53.9 billion worth of Sol is now staked in Solana network from 505,938 unique purse holders, making a 8.31% Annualized return, displayed blockchain data.
The figure was briefly reached the staked Eth Market Cap on April 20, which now has $ 53.93 billion worth of value that is secured from 34.7 million staked tokens, beachacha.in Data Shut up.
A contributing factor behind flippening is Sol’s strong performance Kamag -child in ETH for the past two years, seen increasing Sol/ETH price ratio almost ten times from 0.0088 to 0.0866 since June 12, 2023, Coingecko Data Shut up.
High Sol Staking Return is Stifling Solana Defi, says Pundits
However, the “no-risk” 8.31% return for Sol stakers at the network-level-fifty higher than 2.98% of ETH-can attract Solana users away from DeFI activities, such as providing liquidity to automatic market makers and lending protocols in exchange for rewards token rewards.
“Solana with 65% of its MarketCap staked means that there is no other use of its token, it is really bearish,” developer of Buildera Protocol and X users “JC” Says.
Delete Data It is shown that there are $ 21.5 billion worth of liquid ETH tokens in Ethhereum compared to the $ 7.22 billion liquid staked Sol in Solana.
Multicoin capital managing partner tushar jain previously Says That Solana Defi has been stifled because it does not make sense to make an investment in something that makes a lower return than the “no risk” investment.
“It doesn’t make sense for you to give liquidity to a Sol/USDC AMM when you can earn 5% but staking will earn you 7%.”
Ethereum is also dominant in terms of Defi total amount locked in $ 50.4 Million compared to Solana’s $ 8.85 billion.
The foundits of the industry too Taught out that there are still more validators that are secured by Ethereum network to 1.06 million compared to Solana’s 1,243.
Solana Staking is not really staking, Ethereum researchers have argued
An Ethereum researcher said Solana Staking has never really been socurized Solana Network because there is no mechanism in punish the bad actor for malicious behavior.
“It’s very difficult to call it ‘staking’ when there is no slashing. What’s at stake?” Dankrad feist Says In a post of April 20 x.
“Solana is close to zero security security today.”
Solana Labs Says It is possible to collapse, but it is not automatic, and the property of attacks can only be broken by restarting the entire network.
Related: Ethereum price on the ‘surrsed’ downtrend that can continue properly in 2025 – analyst
Solana is looking to roll a more comprehensive collapse in the fall next year, According to In multicoin capital managing partner Kyle Samani.
Solana Labs CEO Anatoly Yakovenko Says He is pushing for a “correlated slashing” mechanism, where the penalty will be equivalent to the square of the difference between the wrong stake of a validator at a time and the median network staked validator.
Meanwhile, Ethereum developers and researchers explore ways to decentralize Ethereum staking.
Many Ethereum stakers have arranged Liquid staking protocol Over the past few years due to the high 32 ETH ($ 50,750) minimum required to run an independent validator.
However, this shift has led to the Lido protocol that captures an 88% part in the Ethereum liquid staking market, adding another layer to concerns in Ethereum’s centralization.
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