Whereas the USD-denominated worth of Solana’s (SOL) staking ecosystem hits $70 billion, cryptocurrency fans are guessing whether or not its economics are safer than these of its key rival Ethereum (ETH).
Solana (SOL) would possibly lastly be near Ethereum (ETH) by this metric
With the aggregated staking worth of $70 billion in equal, Solana’s (SOL) financial safety is getting near that of Ethereum (ETH). On the identical time, this indicator stays one of many principal catalysts for L2 selecting Ethereum (ETH), Jun Soo Kim of Apybara staking platform says.
The nuance missed right here is that $70B is staked as a result of a big portion of it belongs to the inspiration and their shut VCs and extra importantly due to the ~$20M/day inflation for stakers
Funniest half being that financial safety is seemingly a meme for solbros regardless of this https://t.co/gQEJ6o9BlY
— ℳiLLiΞ X (@llamaonthebrink) March 22, 2024
Ethereum (ETH) supporters doubted these estimations. A Synthetix (SNX) contributor who goes by @llamaonthebrink on X pressured the imbalance of SOL staking.
Solana’s (SOL) staking scene is closely concentrated: A big portion of locked SOL belongs to both Solana Basis or related VC corporations.
Additionally, most significantly, the SOL provide is affected by the $20 million per day inflation for its stakers. Thus, the big share of staked SOL can’t be interpreted as an indicator of financial safety for the common holder.
As per the Staking Rewards tracker, Ethereum (ETH) and Solana (SOL) stay the biggest cryptocurrencies by way of the online worth of staked cash.
Solana’s (SOL) Yakovenko on LSTs: “Not your keys, not your financial safety”
On the identical time, Solana (SOL) sees over 65% of its provide locked in staking, whereas Ethereum (ETH) holders solely injected 26% of the accessible provide into staking mechanisms.
Solana (SOL) founder Anatoly Yakovenko addressed this debate and highlighted that Ethereum’s (ETH) staking ecosystem was additionally centralized:
Until it comes from the Lido, Coinbase, Binance area it’s not financial safety, it’s simply glowing inflation
Although cash in liquid staking protocols nonetheless belong to their preliminary proprietor, Yakovenko recalled an outdated blockchain fan motto: “Not your keys, not your financial safety.” Usually, the very idea of “financial safety” seems to be like a meme to Solana’s (SOL) founder.
