- Solana briefly surpassed Ethereum in total staked value, driven by strong price performance and high staking yields.
- This sparked a heated debate about whether the “flippening” is finally underway.
Solana briefly surpassed Ethereum in total staked value on April 20, a move that some hailed as a milestone while others cautioned against overly bullish interpretations.
According to blockchain data, over $53.9 billion worth of SOL, currently priced at $138.06—is now staked across 505,938 unique wallets, earning an impressive 8.31% annualized return. This figure momentarily edged out Ethereum’s $53.93 billion staked from 34.7 million ETH tokens, as per Beaconcha.in.
While the flip was brief, it highlighted the growing momentum of Solana and reignited debates about a possible “flippening” — the hypothetical moment when a competing blockchain overtakes Ethereum.
A key factor driving this surge is SOL’s price performance relative to Ethereum. The SOL/ETH ratio has surged nearly tenfold, from 0.0088 to 0.0866 since June 2023, according to CoinGecko. Yet, behind the excitement, some analysts argue the implications for Solana may not be as bullish as they seem.
Despite the high staking yield, critics note that the attractive 8.31% return might be dampening Solana’s DeFi ecosystem.
Solana having 65% of its market cap staked means there’s no other use of its token—it’s actually bearish,
said Builda Protocol developer “JC” on X.
DeFiLlama data supports this concern: Ethereum boasts $21.5 billion in liquid staked ETH, while SOL lags with just $7.22 billion. Furthermore, Ethereum dominates in DeFi total value locked (TVL), sitting at $50.4 billion compared to Solana’s $8.85 billion.
Critics also argue that SOL staking lacks true economic security. Ethereum researcher Dankrad Feist pointed out that Solana doesn’t enforce automatic slashing of validators for malicious activity, a key deterrent in Ethereum’s model.
Solana Labs countered that slashing is possible, though it requires a full network restart, an impractical and extreme measure.
Solana Labs CEO Anatoly Yakovenko revealed that a “correlated slashing” mechanism is in development, promising more robust security in the near future. The proposed system would penalize validators proportionally based on deviation from median behavior, potentially bolstering Solana’s staking credibility.
Meanwhile, Ethereum continues grappling with centralization concerns. Its 32 ETH requirement to run a validator has driven most stakers to liquid staking protocols, with Lido controlling 88% of that market, raising fresh questions about decentralization.
The brief flippening showcases Solana’s rising strength, but whether it truly signals a paradigm shift remains to be seen. For now, Ethereum holds firm as the DeFi and staking infrastructure heavyweight, but Solana is proving it’s no longer just a challenger, but a serious contender.