The Solana network briefly exceeded the Ethereum in the entire value of its respective native tokens, Sol and ETH, and triggered the controversy about whether it is definitely bullish or bear for Solana.
Now, Sol, value greater than 53.9 billion US dollars of 505,938 unique items of articles, are stuck onto the Solana network, which achieve an annualized return of 8.31%, as blockchain data show.
The illustration overtook the defined ETH market capitalization on April 20, which now has value creation value 53.93 billion US dollars, that are secured by 34.7 million tokens, as Beaconcha.in show data.
Source: Alex Svanevik
One factor for the flipping has been the strong price -performance of Sol previously two years, wherein the SOL/ETH price rates have increased almost ten times since June 12, 2023.
The return with a high Sol -Stakemiere is such that Solana defi, experts say, say
The “risk-free” 8.31% return for SOL-Stakers on network level-signifier higher than 2.98% of ETH-KANN Solana users draw back from defi activities, e.g.
“Solana has 65% of its market capital that there is no such thing as a other use of the token, it is definitely bearish,” said the Builda protocol developer and X user “JC”.
Defillama data show that Liquid ETH token value 21.5 billion US dollars for Ethereum value only 7.22 billion US dollars on liquid Sol on Solana.
Tushar Jain Tushar, Managing partner of MultiCoin Capital, previously said that Solana Defi was suppressed since it will not be rational to make an investment in something that has achieved a lower return than the “risk-free” investment.
“It doesn’t make sense for them to deliver a SOL/USDC collection liquidity if this deserves 5%, but compliance with 7%.”
Ethereum also dominates in relation to the entire value of Defi, which is $ 50.4 million in comparison with the $ 8.85 billion from Solana.
Industry results also indicated that there are way more validators that secure the Ethereum network at 1.06 million from Solana in comparison with 1,243.
Solana stuck will not be really set, Ethereum argues
An Ethereum researcher said that Solana -s Staking does not likely secure the Solana network because there is no such thing as a mechanism to punish bad actors for malicious behavior.
“It could be very ironic to call it” sepaking “if no slashing is at stake. What is at stake?” Thanks to Feist said in a post on April 20.
“Solana currently has almost economic security.”
Solana Labs said that slashing is already possible, but not robotically and the assets of the attacker can only be broken down by restarting your complete network.
According to Kyle Samani, Managing Partner of Multicoin Capital Managing, Solana would love to perform a more comprehensive Slashing solution later this yr.
Anatoly Yakovenko, CEO of Solana Labs, said that he urged a “correlated slashing” mechanism, wherein the punishment corresponds to the square of the difference between the inaccurate proportion of a validator on an era and the typical network validator.
In the meantime, Ethereum developers and researchers have examined paths to decentralize Ethereum sparkling wine.
Many Ethereum Stakers have used liquid setting protocols lately as a result of the high 32 ETH ($ 50,750), which is required for the operation of an independent validator.
However, this shift has led to the Lido protocol captured a share of 88% within the CSF Markt for Ethereum and that the concerns added an additional layer regarding the centralization of Ethereum.
