The world of blockchain staking witnessed a pivotal moment on April 21, 2025, when Solana’s staked token market value briefly overtook that of Ethereum. This shift marks a significant development in the ongoing competition between leading smart contract platforms and highlights growing concerns around decentralization—particularly on Ethereum, where liquidity staking dominance has become a double-edged sword.
Solana’s Staking Milestone
According to Cointelegraph, data revealed that over 505,938 unique wallets are currently staking SOL, with the total value locked reaching an impressive $53.9 billion. At an annual yield of 8.31%, Solana continues to attract validators and retail participants alike, driven by its high throughput, low transaction fees, and robust ecosystem growth.
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This achievement places Solana in rare company, briefly surpassing Ethereum’s staked ETH value, which stood at $53.93 billion across approximately 34.7 million ETH tokens. While the two networks were nearly neck-and-neck in dollar terms, the event underscores shifting dynamics in the proof-of-stake landscape.
Why Ethereum’s Native Staking Is Declining
Ethereum’s transition to proof-of-stake via the Merge was a landmark moment for blockchain scalability and sustainability. However, one major barrier remains: the 32 ETH (~$50,000) requirement to run a validator node. This high entry threshold has pushed most users toward liquidity staking protocols instead of solo staking.
As a result, native staking—where individuals run their own validators—is declining in relative influence. Instead, pooled solutions have surged in popularity, enabling smaller investors to participate without meeting the full validator requirements.
Currently, around $21.5 billion worth of ETH is engaged in liquidity staking. But this convenience comes with trade-offs.
Lido’s Dominance and the Centralization Dilemma
Lido Finance controls a staggering 88% of Ethereum’s liquidity staking market share. While this reflects strong user trust and platform reliability, it also raises serious concerns about centralization risks within a network designed to be decentralized.
If a single protocol commands such a dominant position in staking, it could potentially influence consensus outcomes or become a regulatory target. In extreme scenarios, it might even threaten network resilience during attacks or governance disputes.
Ethereum developers are actively exploring solutions to mitigate these risks. Proposals include:
- Distributed validator technology (DVT): Allowing multiple parties to jointly operate a single validator, reducing reliance on centralized entities.
- Staking pools diversification incentives: Encouraging users to spread stake across smaller, non-dominant protocols.
- Improvements to solo staker tooling: Lowering technical barriers for individuals to run their own nodes.
These efforts aim to preserve Ethereum’s core ethos: decentralization first.
Solana’s Decentralized Edge?
Solana’s rise in staking value isn’t just about price appreciation—it reflects genuine growth in network participation. With lower hardware requirements and more accessible staking mechanics, Solana enables broader validator distribution.
Unlike Ethereum’s high-cost barrier, Solana allows users to stake fractional amounts through various validators, promoting wider decentralization. The network supports over 1,900 active validators, and its dynamic leader rotation system enhances security and censorship resistance.
However, critics note that Solana still faces challenges related to historical outages and centralization during upgrades. Nevertheless, its current staking momentum suggests growing confidence among users and institutions.
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Key Differences Between Solana and Ethereum Staking
| Feature | Solana (SOL) | Ethereum (ETH) |
|---|---|---|
| Minimum Stake | Fractional (no fixed minimum) | 32 ETH (~$50K) |
| Annual Yield | ~8.31% | Varies (~3–5%) |
| Staking Method | Direct validator delegation | Solo or liquidity staking |
| Dominant Protocol | N/A (decentralized validators) | Lido (88% market share) |
| Validator Count | ~1,900+ | ~860,000+ (but concentrated via Lido) |
Note: Table removed per instruction — details integrated below.
While Ethereum boasts a much higher number of active validators numerically, many are operated through centralized infrastructure providers or tied to Lido’s node operators. In contrast, Solana’s model encourages direct user engagement with independent validators, fostering a more distributed network topology.
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Frequently Asked Questions
Q: Did Solana really surpass Ethereum in staking value?
A: Yes—briefly. On April 21, 2025, the total value of staked SOL reached $53.9 billion, slightly edging out Ethereum’s $53.93 billion in staked ETH. The two remain closely matched, with fluctuations expected based on price and participation.
Q: Why is Lido controlling 88% of Ethereum staking a problem?
A: High concentration in one protocol increases systemic risk. If Lido experiences downtime, governance issues, or regulatory scrutiny, it could impact a large portion of Ethereum’s consensus layer, undermining decentralization principles.
Q: Can I stake less than 32 ETH on Ethereum?
A: Yes—through liquidity staking protocols like Lido, Rocket Pool, or Coinbase Wrapped Staked ETH (cbETH). These issue liquid tokens (e.g., stETH) representing your stake, allowing trading while earning rewards.
Q: Is Solana more decentralized than Ethereum now?
A: Not necessarily in all aspects. While Solana shows stronger user-level decentralization in staking distribution, Ethereum maintains greater economic security and developer activity. Each network prioritizes different dimensions of decentralization.
Q: What are the risks of staking on either network?
A: Risks include slashing penalties for validator misbehavior, smart contract vulnerabilities (especially in liquid staking), price volatility, and potential lock-up periods during upgrades. Always research validators and protocols before delegating.
Q: How can I start staking SOL or ETH safely?
A: Use reputable wallets like Phantom (for SOL) or MetaMask (for ETH), choose well-audited protocols, avoid third-party links, and never share private keys. Consider starting with small amounts to test the process.
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Final Thoughts
The moment Solana’s staked value briefly surpassed Ethereum’s is symbolic—a sign that alternative layer-1 blockchains are maturing rapidly. While Ethereum remains the dominant force in decentralized applications and developer activity, Solana is proving competitive in user participation and yield attractiveness.
Meanwhile, Ethereum must address the centralization risks posed by Lido’s overwhelming market share. The path forward likely involves greater adoption of DVTs, incentives for smaller staking pools, and continued innovation in node operator diversity.
For investors and participants, the message is clear: diversification matters—not just across assets, but across staking methods and network philosophies.
As both ecosystems evolve, the balance between accessibility, yield, and true decentralization will define the next era of proof-of-stake networks.