Recently, Solana briefly surpassed Ethereum in staking yields, leading to discussions in the crypto community about staking dynamics and security.
Move to High Staking Yields
On April 20, 2025, Solana's staking yield temporarily exceeded that of Ethereum, accumulating over $53.9 billion. This event sparked interest and concern in the crypto market, serving as a starting point for discussions about staking models.
Criticism of Solana's Staking Model
Ethereum researchers expressed concerns regarding Solana's staking model, citing low economic security due to the absence of slashing mechanisms. Dankrad Feist, a researcher from the Ethereum Foundation, stated: 'It's very ironic to call it 'staking' when there is no slashing. What's at stake? Solana has close to zero economic security at the moment.'
Market Impact and the Future of Staking
Solana's higher staking yield attracted investments, contributing to temporary market fluctuations. Experts noted the risks of centralization in Ethereum due to its liquid staking protocols controlling significant portions. The incident highlights the rivalry between Solana and Ethereum, and Ethereum's quick recovery emphasizes its entrenched market position in staked value.
The situation between Solana and Ethereum underscores the ongoing challenges in staking and may lead to further regulatory or technological changes related to these blockchains.
