Solana has experienced a stellar 2021, with a massive surge in popularity for the smart contract platform, rallying to new all-time highs after its blockchain saw significant growth in adoption, thanks to it garnering significant mainstream interest.
The Ethereum Killer
While many blockchains in the past have been dubbed as “Ethereum killers,” Solana is the blockchain living up to the name, competing strongly with blockchains such as Cardano and, of course, Ethereum.
Solana has seen its market share increase significantly each week, as DeFi on Solana got off to a blistering start, with investors increasingly looking for cheaper alternatives to Ethereum zeroing in on Solana. Although Solana’s market share in the DeFi space is relatively small compared to Ethereum, it has become a significant player when it comes to staking.
Solana Ramps Up Staking
Until recently, Cardano held the distinction of being the network with the most staked cryptocurrency. However, with staking seeing a significant increase on Solana, the latter has become the network with the most staked cryptocurrency, moving ahead of blockchains such as Cardano and Ethereum.
Staking has become one of the most popular avenues for investors to earn passive income, with assets such as ETH and ADA seeing a surge in popularity due to the networks offering significant and attractive yields to investors. Solana has eaten into this market, quickly becoming the go-to network for investors, offering some of the highest yields in the market when compared to blockchains such as Cardano and Ethereum.
Highest Value Of Tokens Staked
As of 23rd November, Solana has become the network with the highest value of tokens staked; the total value of the staked tokens has now crossed $84 billion, putting it ahead of leading blockchains Ethereum and Cardano, which previously held the highest value of staked tokens.
Currently, Solana has around 77.37% of its total supply staked, offering an annual yield of 6.79%. In comparison, Cardano has around 70.5% of the total supply staked, with an annual yield of 5.71%, while Ethereum has a 6.85% stake with an annual yield of 5.2%.
“Ethereum Killers” Seeing Increased Activity
As competition heats up, there has been a significant increase in activity on blockchains such as Solana and Cardano. Ethereum is still the leader and sees the most activity in DeFi and NFTs, but blockchains such as Solana and Cardano have also seen a significant spike in activity.
Cardano’s activity saw a significant jump in November, surpassing Ethereum in terms of usage, with the blockchain also expecting to launch its first DEXes. Activity on Solana has also seen a significant jump, with DeFi and NFT minting picking up considerably.
New Greyscale Fund To Invest In Solana
Digital asset manager Greyscale has announced that it will be investing solely in SOL as part of its sixteenth fund . SOL is Solana’s native token and has seen a surge during the current year, setting record highs. Greyscale has invested in several single-asset products such as Bitcoin, Basic Attention Token (BAT), Chainlink, Ethereum, Litecoin, Stellar Lumens, and several others.