The July 2024 Crypto Market Report by AMBCrypto sheds light on Solana’s remarkable achievements in the decentralized finance (DeFi) sector. Solana’s staking system has amassed an impressive $61 billion, surpassing Ethereum and indicating a burgeoning DeFi ecosystem that could see even greater growth.
Solana’s staking success is not merely a quantitative feat but also reflects a qualitative shift in the DeFi landscape. The network’s Total Value Locked (TVL) in native SOL tokens grew by 26%, despite a 9% decline in USD terms, showcasing resilience and investor confidence.
Solana’s competitive stablecoin market
This growth is further fueled by the expansion of Solana’s stablecoin market, which saw an 8% increase, reaching $3.1 billion, largely due to institutional moves like PayPal’s PYUSD launch on Solana.
One of Solana’s standout features is its user-friendly staking system. Unlike Ethereum, where 65% of staked ETH is in liquid form, only 6.5% of Solana’s staked SOL is liquid.
This represents a significant growth opportunity for Solana’s DeFi ecosystem, particularly as more participants are drawn to its accessible staking process.
Key protocols such as Jito, Marinade Finance, and Jupiter dominate Solana’s liquid staking market, collectively holding 80% of all liquid staked SOL, with JitoSOL alone accounting for 48% of this, valued at $1.7 billion.
Can SOL continue to outshine ETH?
The accessibility of Solana’s staking system, facilitated by its “delegated Proof-of-Stake” model, sets it apart from Ethereum’s more complex setup, attracting a broader range of users. This ease of use, combined with substantial institutional interest, positions Solana as a formidable player in the DeFi space.
Solana’s significant staking and DeFi growth underscore its potential to lead the blockchain sector. The network’s achievements in attracting staked capital and expanding its stablecoin market signal a robust and promising future.
As Solana continues to innovate and grow, it is poised to play a pivotal role in shaping the DeFi landscape, offering substantial opportunities for investors and developers alike.
