{"id":127586,"date":"2025-04-21T04:15:55","date_gmt":"2025-04-21T04:15:55","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=127586"},"modified":"2025-04-21T04:15:55","modified_gmt":"2025-04-21T04:15:55","slug":"debate-as-solana-briefly-flips-ethereum-in-staking-market-cap","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=127586","title":{"rendered":"Debate as Solana briefly flips Ethereum in staking market cap"},"content":{"rendered":"

Source: Cointelegraph.com NewsThe Solana network briefly surpassed Ethereum in total staked value of their respective native tokens, SOL and ETH, sparking debate over whether it is actually bullish or bearish for Solana.\u00a0
\nMore than $53.9 billion worth of SOL is now staked on the Solana network from 505,938 unique wallet holders, who are making an 8.31% annualized return, blockchain data shows.
\nThe figure briefly overtook the staked ETH market cap on April 20, which now has $53.93 billion worth of value secured from 34.7 million staked tokens, Beaconcha.in data shows.
\nSource: Alex SvanevikA contributing factor behind the flippening has been SOL\u2019s strong price performance relative to ETH over the last two years, which has seen the SOL\/ETH price ratio rise nearly tenfold from 0.0088 to 0.0866 since June 12, 2023, CoinGecko data shows.
\nHigh SOL staking return is stifling Solana DeFi, pundits say
\nHowever, the \u201crisk-free\u201d 8.31% return for SOL stakers at the network level \u2014 significantly higher than ETH\u2019s 2.98% \u2014 may be attracting Solana users away from DeFi activities, such as providing liquidity to automated market makers and lending protocols in exchange for token rewards.
\n\u201cSolana having 65% of its marketcap staked means there’s no other use of it’s token, it\u2019s actually bearish,\u201d Builda Protocol developer and X user \u201cJC\u201d said.
\nDefiLlama data shows that there are $21.5 billion worth of liquid staked ETH tokens on Ethereum compared to just $7.22 billion of liquid staked SOL on Solana.
\nMulticoin Capital managing partner Tushar Jain previously said that Solana DeFi has been stifled because it\u2019s not rational to make an investment in something that produces a lower return than the \u201crisk-free\u201d investment.
\n\u201cIt doesn\u2019t make sense for you to provide liquidity on a SOL\/USDC AMM when that might earn you 5% but staking earns you 7%.\u201d
\nEthereum also dominates in terms of DeFi total value locked at $50.4 million compared to Solana\u2019s $8.85 billion.
\nIndustry pundits also pointed out that there are still far more validators securing the Ethereum network at 1.06 million compared to Solana\u2019s 1,243.
\nSolana staking isn\u2019t really staking, Ethereum researcher argues
\nOne Ethereum researcher said Solana staking isn\u2019t really securing the Solana network because there isn\u2019t a mechanism to penalize bad actors for malicious behavior.
\n\u201cIt’s very ironic to call it \u2018staking\u2019 when there is no slashing. What’s at stake?\u201d Dankrad Feist said in an April 20 X post.\u00a0
\n\u201cSolana has close to zero economic security at the moment.\u201d
\nSolana Labs said slashing is already possible, but it\u2019s not automatic, and the attacker\u2019s assets can only be slashed by restarting the entire network.
\nRelated: Ethereum price in \u2018cursed\u2019 downtrend which could continue well into 2025 \u2014 Analyst
\nSolana is looking to roll out a more comprehensive slashing solution later this year, according to Multicoin Capital Managing Partner Kyle Samani.
\nSolana Labs CEO Anatoly Yakovenko said he\u2019s pushing for a \u201ccorrelated slashing\u201d mechanism, where the penalty would be equal to the square of the difference between a validator\u2019s faulty stake in an epoch and the median network staked validator.
\nSource: Anatoly YakovenkoMeanwhile, Ethereum developers and researchers have been exploring ways to decentralize Ethereum staking.\u00a0
\nMany Ethereum stakers have resorted to liquid staking protocols over the last few years due to the high 32 ETH ($50,750) minimum needed to run an independent validator.\u00a0
\nHowever, this shift has led to the Lido protocol capturing an 88% share in Ethereum\u2019s liquid staking market, adding another layer to Ethereum\u2019s staking centralization concerns.
\nMagazine: Comeback 2025: Is Ethereum poised to catch up with Bitcoin and Solana?Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"

Source: Cointelegraph.com NewsThe Solana network briefly surpassed Ethereum in total staked value of their respective native tokens, SOL and ETH, sparking debate over whether it is actually bullish or bearish… <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/127586"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=127586"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/127586\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=127586"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=127586"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=127586"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}