Solana’s staking and restaking business models are more competitive and profitable than Ethereum’s, according to a recent article by Lawrence Lee of Mint Venture. The Solana chain has experienced a surge in TVL (total value locked) and is now ranked 12th, surpassing Orca. The booming staking industry, which is the largest crypto track in terms of TVL, has left projects like Lido, Eigenlayer, and Etherfi struggling despite their presence on the Ethereum network.
The article delves into the competitive landscape of liquid staking, restaking, and liquid restaking on the Ethereum network, contrasting it to Solana’s offerings. Lido, Eigenlayer, and Etherfi are leading projects on Ethereum, while Solana boasts Solayer as a significant restaking platform. Key differences between Solana and Ethereum staking models include:
1.
Solana’s Proof-of-Stake (PoS) underlying income is higher than Ethereum’s, providing a more significant baseline for staking-related protocols. 2. Solana’s Real Economic Value (REV) has increased, surpassing Ethereum’s after the Cancun upgrade. 3. Solana’s swQoS mechanism allows for additional leasing demand for transaction passability, unlike Ethereum.
In conclusion, Solana’s staking and restaking businesses appear to be more profitable than Ethereum’s. However, it is too early to say if Solana has found its Prime Market Fit (PMF). Despite this, it is clear that Solana’s staking and restaking models are better positioned for growth compared to Ethereum’s.