After coming close to the worst during the fall of the crypto exchange FTX, Solana exploded the charts. Staking the Solana (SOL) crypto, which is now one of the best performing cryptos of 2023, generated over 200% profit during the year. A performance that completely crushes that achieved by its competitor Ethereum.
Solana becomes the 2e best crypto in terms of market capitalization
In the crypto staking market, Solana (SOL) is currently experiencing a real reversal of the situation. Crypto now ranks second in terms of market capitalization. As of October 24, 2023, the total value locked in the Solana protocol amounts to 400.05 million SOL tokens, or $12.72 billion in SOL tokens.
But what is even more interesting is the reward generated by staking Solana. According to the StakingRewards.com platform, the network distributed more than $905 million in rewards this year, an annual reward of +7.08%. Even though Ethereum staking only generated a 3.47% reward, this performance reveals the power of staking. Perhaps we should pay more attention to it.
69% increase in SOL staking in the last 24 hours: Ethereum tilts?
It is important to note that the +7.08% reward rate for SOL staking has been mitigated by inflation. Indeed, the generous reward distributed contributed to an inflation of the supply of tokens in circulation. This, in turn, acted on the price of SOL which suffered a depreciation.
Ultimately, even with the +7.08% reward rate, the actual inflation-adjusted reward rate was estimated at -0.29%. However, if staking Ethereum for example was only able to generate a reward rate of +3.47%, the real reward rate adjusted for inflation is +3%.
As a result, Solana staking may have achieved one of the worst real reward rates on the market for high market capitalization cryptos. However, this is not about comparing Ethereum to Solana. Basically, it’s staking that wins.
Furthermore, inflation has not diminished the popularity of SOL staking. According to the latest data, SOL staking has seen an increase of almost 69% in the last 24 hours. Additionally, over 70% of the crypto market capitalization has been staked in nearly 772,980 crypto wallets.
Let us hope, however, that France’s attempts to regulate DeFi and rumors of secret centralization of the Solana network will not undermine the progress observed so far.
Receive a summary of the news in the world of cryptocurrencies by subscribing to our new service daily and weekly so you don’t miss anything of the Tremplin.io essentials!
