TL;DR
- Ethereum has reclaimed 42% of the capital outflows that went to Solana, highlighting its dominance in the DeFi ecosystem.
- SOL has lost approximately $55 million in total value locked (TVL), while over $1 billion has returned to ETH.
- Despite its challenges, Solana surpassed Ethereum in fees generated on October 28, raising over $2.54 million in a single day, driven by activity on the Raydium exchange.
Ethereum (ETH) has shown a remarkable recovery in the DeFi sector by capturing 42% of the capital flows that previously went to Solana.
While Solana has received capital from other blockchains, a significant portion has returned to Ethereum, demonstrating the latter’s dominance in the ecosystem. If Solana aims to thrive, it is essential that it attracts total value locked (TVL) from ETH and its layer-2 networks, which concentrate the majority of resources in this space. The current situation for Solana is challenging, as it has not been able to capture a significant portion of the TVL residing on Ethereum.
No. Adding some context (and data) changes the story regarding flows to Solana from other chains👇
Over the last month, @base is #1 in terms of net flows ($463m). @solana is #2 with $197m of net flows. @SuiNetwork #3 with $120m.
If we zoom out to Year-to-Date, @arbitrum… https://t.co/FXd7kqJ2YD pic.twitter.com/mqqfRnGxpc
— Michael Nadeau | The DeFi Report (@JustDeauIt) October 30, 2024
Data reveals that, to date, Solana has experienced an approximate loss of $55 million in TVL, with flows migrating to platforms like Base, Optimism, and Arbitrum. Despite receiving inflows of $2.36 billion from ETH, over $1 billion has returned to the original chain, underscoring the capital movement in the sector. This dynamic indicates that the flow of assets from ETH to SOL has been relatively limited, constituting only 2.7% of Solana’s total TVL.
ETH Reaches $50 Billion in TVL
As Ethereum continues to consolidate, the total value locked in its network has surpassed $50 billion, despite experiencing net outflows of $6 billion to date. However, it is important to note that 83% of these assets have been directed to layer-2 solutions, meaning the capital remains part of its ecosystem.
Solana Surpasses Ethereum in Fees Generated
On the other hand, Solana has managed to surpass Ethereum in terms of fees generated in a single day. On October 28, SOL raised over $2.54 million in fees, exceeding the $2.07 million generated by ETH, positioning it as the fifth-largest fee-generating protocol at that time. This increase in generated fees is attributed to the growth of the decentralized exchange Raydium, which demonstrates Solana’s potential to attract activity to its platform.
These observations indicate that, despite the competition between Ethereum and Solana, the original network remains the most valued and dominant in the DeFi ecosystem, while Solana seeks to find its place
