Even as market volatility tests investor conviction, core layer-1 blockchains like Solana (SOL) and Ethereum (ETH) are quietly demonstrating strengthening fundamentals, with staking emerging as a critical indicator of long-term confidence. A recent analysis reveals that both networks have achieved significant milestones in their staking ratios, yet a closer look uncovers a notable divergence in their economic implications.
Staking Milestones and Economic Divergence
Despite the prevailing market FUD, Solana and Ethereum have both reached all-time high staking ratios, signaling robust community conviction. Solana has achieved an impressive 70% staking ratio, effectively locking up approximately $60 billion worth of SOL. Ethereum, while not far behind, has pushed its staking ratio to 30%, accounting for roughly $120 billion in locked ETH. While both milestones are significant, the stark difference in the proportion of staked supply—70% for SOL versus 30% for ETH—highlights a crucial economic divergence that suggests Solana is developing a unique economic advantage.
Solana's Enhanced Supply Dynamics and Outperformance
Solana's exceptionally high staking ratio of 70% translates into significantly tighter supply dynamics compared to Ethereum. With nearly 400 million SOL tokens effectively locked out of a total circulating supply of 567 million, Solana experiences a far more pronounced "supply squeeze." This means Solana's staked supply is more than ten times larger than Ethereum's, directly impacting its economic strength. A reduced circulating supply has the potential to amplify price movements and underscores a greater scarcity. This theoretical advantage is already manifesting as real-world performance; Solana has not only attracted over 50% of bridged capital from Ethereum in recent weeks but SOL has also consistently outperformed ETH, with a rising SOL/ETH ratio. This strong staking combined with continued capital inflows and technical strength positions Solana with increasingly strong long-term potential.
