Solana surpassed Ethereum as top asset in staking value

Solana has overtaken Ethereum in terms of staking capitalization, according to Nansen CEO Alex Svanevik. The volume of SOL tokens in staking reached the $53.96 billion mark, surpassing ETH's figure of $53.77 billion. 

The main reason for Solana's success was the high share of tokens participating in staking—about 70% of all coins, as CoinMarketCap notes. In comparison, Ethereum's figure is only 21%. In addition, the absence of a high entry threshold, not requiring users to make a large initial investment (unlike Ethereum with a minimum amount of 32 ETH), allowed to attract a more diverse audience of investors.

According to CoinMarketCap, the blockchain creates favorable conditions for the promotion of decentralized finance and NFT projects due to low fees and high annual returns of 7.2%, which is higher than Ethereum's figure by almost one and a half. In addition, Solana's technological advantage of being capable of processing over 4,000 transactions per second has also played a role in its popularity. This, in turn, contributes to the growth of investor confidence, CoinMarketCap experts believe.