Something big just happened in the crypto world: Solana has officially passed Ethereum when it comes to staking market cap. According to StakingRewards, Solana reached $53.15 billion in staked value—slightly higher than Ethereum’s $53.72 billion.
That’s no small feat. It’s gotten people on X (formerly Twitter) talking: is Solana finally stepping out of Ethereum’s shadow? Or is this just a temporary win?
Solana’s Staking Game Is Strong
One of the reasons for this milestone is how much of Solana’s supply is locked up for staking. Right now, nearly 65% of all SOL tokens are staked. And it’s offering a solid 8.3% annual return to those who do it.
Ethereum, in comparison, has only about 28% of its supply staked, and it offers a much lower return—just 2.98%.
That’s a pretty big gap. So it’s no surprise more investors are leaning toward Solana to earn passive income.
But Not Everyone’s Convinced
Despite this success, not everyone’s sold on Solana’s staking setup. Ethereum researcher Dankrad Feist pointed out something important: Solana doesn’t penalize bad validators (the people and companies that help secure the network). This is known as a “slashing” system—and Ethereum has it.
Without penalties, Feist argues that Solana’s staking model is less secure. “What’s the point of calling it ‘staking’ when there’s nothing really at stake?” he asked.
Whale Movements Raise Eyebrows
There’s also been a lot of action from big investors—aka “whales”—that’s caught the market’s attention.
- On April 20, someone unstaked over 37,800 SOL—worth around $5.26 million.
- Crypto firm Galaxy Digital withdrew over 600,000 SOL across a few days.
- A new wallet pulled out $5.15 million in SOL from Binance.
- Binance itself saw whales withdraw 370,000 SOL, worth over $52 million.
At the same time, others were buying. A U.S. company called Janover added more than 163,000 SOL to its holdings—about $21 million worth—and partnered with Kraken to stake it.
So, while some whales are cashing out, others are doubling down. That kind of mixed signal has investors watching closely.
What’s Happening With the SOL Price?
At the time of writing, SOL was trading at $140.49, up 3.5% in 24 hours and over 14% for the week. That’s a strong bounce.
But the price has a challenge ahead: $144 is a key resistance level. If Solana breaks through that, some say it could push even higher. On the flip side, if it drops below $129, we could see a lot more selling pressure.
Why Solana Keeps Gaining Ground
Solana’s not just sitting still—it’s constantly building.
Recent improvements like:
- The QUIC protocol for faster data transfers,
- Its mix of Proof-of-History (PoH) and Proof-of-Stake (PoS),
- And new validator clients,
…are helping it grow more stable and decentralized.
Plus, with the Solang compiler, developers who know Ethereum’s Solidity language can now build on Solana too. That could bring in a whole wave of new apps.
Later this year, Solana will also host its major event, Breakpoint, where we can expect more news and partnerships to drop.
Ethereum vs. Solana – A Real Rivalry?
Even with this staking victory, Solana still has work to do. Ethereum has a much more mature DeFi ecosystem, stronger backing from institutions, and a more secure staking model.
Some experts even say Ethereum’s lower staking ratio is intentional—it keeps more ETH liquid and available for DeFi use, helping the ecosystem run smoother.
Meanwhile, Solana’s 65% staked supply may limit how much liquidity is available for apps and exchanges. That’s a challenge it still has to solve.
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