- Solana’s staked market cap briefly surpassed Ethereum’s, with $53.9B staked.
- SOL’s staking yield of 8.31% outpaces Ethereum’s 2.98%, attracting users.
- Solana’s lack of slashing mechanisms raises concerns about network security.
On April 20, Solana achieved a new level, overtaking Ethereum in total staked dollar value. This momentary lead in staking dominance between the two blockchain networks marks an impressive development in their ongoing competition.
Solana’s Peak Staking Value
The staked market cap of Solana achieved its highest point at over $53.9 billion. The market value of staked tokens on Solana surpassed Ethereum’s staked tokens by a marginal amount reaching $53.7 billion based on Nansen CEO Alex Svanevik’s data. However, the lead was brief as Ethereum took back its position from Solana and now holds $56 billion in stake value compared to Solana's $54 billion.
A significant driver behind Solana’s temporary rise was its higher staking yield. Currently, SOL offers a return of 8.31%, while ETH’s staking yield stands at 2.98%, according to Staking Rewards data. This yield difference has led some users to prefer staking SOL rather than participating in decentralized finance (DeFi) protocols. Solana also brags a relatively high staking participation rate, at around 65%.
This indicates strong community involvement. Despite the appeal, Solana lacks aggressive slashing mechanisms for misbehaving validators, unlike Ethereum’s more stringent security measures. Uddalak, a crypto content marketer, pointed out that each network prioritizes different aspects, with Ethereum focusing on broader resilience and DeFi engagement.
Solana’s staking success shows a growing trend in the ecosystem, but it raises questions about security and long-term sustainability.
SOL’s Current Price Action: Key Support and Resistance Levels Identified
The current price action for SOL is closely monitored, and significant support and resistance levels have been identified. The key support level sits at $129, while resistance is seen at $144. Price movement outside of this range will determine future market sentiment.
Support at $129 has held firm, with buyers likely to defend this level. On the other hand, the $144 resistance level has proven difficult to break, with sellers expected to push back at this point. Traders will closely watch for any movement outside these ranges.
A deeper view of Solana UTXO Realized Price Distribution (URPD) is segmented by all-time high (ATH) price levels. The X-axis represents the price levels, while the Y-axis shows the corresponding realized volume at those levels. The chart reveals a significant concentration of SOL transactions around price levels of $12.79 and $14.54, with volume spikes observed in these ranges. The highest peak occurs around the $14.54 price level, indicating a substantial number of SOL transactions occurred at this price.
The volume near these levels is much higher than other price levels, showing a notable correlation between price actions and market participants' behavior. The chart further shows a notable decline in volume as the price moves further from the ATH partitioned price points. This provides insights into the price distribution and market behavior, reflecting SOL's price movements and the concentration of realized gains or losses.