Solana: 83% of all SOL issued is staked
Solana, one of the most popular networks in the cryptocurrency space, has stood out for its growing engagement in staking. Currently, 83% of all issuance of SOL, its native currency, is allocated to staking contracts, which reflects investors' confidence in its ecosystem.
This movement not only guarantees attractive rewards for participants, but also strengthens the security of the network, essential for its evolution and competitiveness.
Staking on Solana involves locking SOL tokens in native contracts, allowing investors to earn rewards in exchange for helping keep the network operating in a secure and decentralized manner.
Enthusiasm for Solana staking has surpassed even that of established networks such as Ethereum. On-chain data indicates that Solana has a significantly higher stake ratio than Ethereum, which currently only has 28.70% of its total issuance staked.
Advantages of staking on Solana
Solana not only leads in staking volume, but also offers a considerably higher annualized return (APY) compared to Ethereum. While most Solana validators offer around 7-8% APY, Ethereum hovers around 3.5%. This higher yield has attracted a considerable mass of investors, eager to obtain more substantial profits through staking.
Despite this, it is important to consider the impact of inflation on stakers’ real returns. Solana follows an inflation curve that reduces its rate annually by 15%, until reaching the level of 1.5%.
Currently, the annualized inflation rate is around 4.3%. Even with this inflationary rate, the rewards offered by Solana validators continue to be competitive, in many cases surpassing the returns provided by Ethereum.
Providers like Marinade Finance have played a crucial role in innovating the Solana staking ecosystem. The platform offers a staking auction marketplace, the Stake Auction Marketplace, where validators compete with each other to offer the best return rates to stakers. This competition has resulted in very attractive net returns, with some validators offering up to 9.13% APY.
Approximately 93.4% of all staked SOL is allocated to native contracts, which reinforces the confidence of the institutional market and large investors in Solana's long-term potential.