Cryptocurrency aficionados are speculating as to whether the economics of Solana’s (SOL) staking environment, valued at $70 billion in USD, are more secure than those of its main rival Ethereum (ETH).
Solana (SOL) might finally be close to Ethereum (ETH) by this metric
The combined staking value of $70 billion equivalent is bringing Solana’s (SOL) economic security very near to Ethereum’s (ETH). Nonetheless, according to Jun Soo Kim of the Apybara staking platform, this signal is still a major factor in L2 selecting Ethereum (ETH).
Supporters of Ethereum (ETH) questioned these estimates. The asymmetry of SOL staking was emphasised by a Synthetix (SNX) contributor on X who goes by the handle @llamaonthebrink.
The staking landscape in Solana (SOL) is very concentrated: The Solana Foundation and related venture capital businesses own a large share of locked SOL.
https://x.com/llamaonthebrink/status/1771233203501588990?s=20
Most significantly, the $20 million daily inflation for its stakers has an impact on the SOL supply. Therefore, it is not possible to interpret the high staked SOL share as a sign of financial stability for typical holders.
Ethereum (ETH) and Solana (SOL) continue to be the biggest cryptocurrencies in terms of the net worth of staked coins, according to the Staking Rewards tracker.
Solana’s (SOL) Yakovenko on LSTs: “Not your keys, not your economic security”
In contrast, Ethereum (ETH) holders have only contributed 26% of the available supply to staking mechanisms, but Solana (SOL) has almost 65% of its supply locked in staking.
In response to this discussion, Solana (SOL) founder Anatoly Yakovenko emphasised that the staking environment for Ethereum (ETH) was likewise centralised:
If it originates from the Lido, Coinbase, or Binance zone, it is only glittering inflation rather than economic security.
Yakovenko remembered an old blockchain enthusiast motto: “Not your keys, not your economic security,” even if coins in liquid staking systems still belong to their original owner. To the creator of Solana (SOL), the term “economic security” itself often seems like a meme.
