The Solana network briefly surpassed Ethereum in total staked value, which has led to active discussions among blockchain experts.
Solana Staking Data
Currently, over $53.9 billion worth of SOL tokens are staked on the Solana network from 505,938 unique wallet holders. Blockchain data shows stakers are receiving an 8.31% annualized return. This figure briefly overtook the staked value of Ethereum, which amounts to $53.93 billion with 34.7 million staked ETH tokens.
Impact of High Staking Returns on DeFi
The high staking yield of SOL (8.31%) significantly exceeds that of ETH (2.98%), which may be diverting users from DeFi activities such as providing liquidity or participating in lending protocols. Builda Protocol expert remarked: "Solana has 65% of its market cap staked, which is actually bearish."
Arguments Against Solana Staking
Some researchers argue that staking on Solana does not provide adequate network security due to the lack of mechanisms to penalize dishonest validators. Ethereum researcher Dankrad Feist commented, "It’s very ironic to call it ‘staking’ when there is no slashing." Solana plans to implement more sophisticated slashing mechanisms later this year.
In light of the recent changes in staking figures of Solana and Ethereum, discussions about how high staking yields may affect DeFi activity and network security will continue.
