Debate as Solana briefly flips Ethereum in staking market cap
The Solana network briefly surpassed Ethereum in total staked value, with over $53.9 billion in SOL staked from 505,938 unique wallets, yielding an 8.31% annualized return. This figure briefly exceeded Ethereum's staked value of $53.93 billion from 34.7 million tokens. The SOL/ETH price ratio increased nearly tenfold since June 2023. However, the high staking return is drawing users away from Solana's DeFi activities, with only $7.22 billion in liquid staked SOL compared to $21.5 billion in liquid staked ETH. Ethereum leads in DeFi total value locked at $50.4 million versus Solana's $8.85 billion and has significantly more validators (1.06 million vs. 1,243). Concerns exist regarding Solana's staking security, as it lacks a mechanism to penalize malicious behavior, prompting discussions on implementing a slashing solution. Ethereum faces centralization issues in its liquid staking market, with Lido capturing 88% of it.
