Solana's exponential growth in the realm of decentralized finance (DeFi) has stirred discussions of it possibly rivaling Ethereum's valuation, according to recent reports.
A study conducted by Franklin Templeton has unveiled that Solana's DeFi platforms are among the most utilized and profitable in the blockchain landscape, foretelling a potential challenge to Ethereum's current standing.
Titled 'Franklin Templeton Predicts Solana as Ethereum's Rival', the report sheds light on the remarkable growth and promising future of Solana's DeFi ecosystem, suggesting that its valuation could soon be on par with Ethereum's.
Notably, the asset management firm disclosed that six Solana-based protocols have exceeded $1 billion in Total Value Locked (TVL), signaling a burgeoning interest in the network. In a significant development, Solana outperformed Ethereum in various key metrics during the last two quarters of 2024, with its decentralized exchange volume surpassing that of Ethereum and all Ethereum Virtual Machine (EVM)–based DEXs combined.
The surge points to a notable shift in DeFi activities towards Solana, posing a challenge to Ethereum's long-standing dominance. Jito (JTO) stands at the forefront, a liquid staking protocol that recently reached a milestone of $3 billion in TVL, marking a historic achievement for a Solana-based protocol.
Other prominent protocols such as Jupiter (JUP), Raydium (RAY), Kamino (KMNO), Marinade (MNDE), and Sanctum Coin (SANCTA) have also played a crucial role in bolstering Solana's expanding DeFi ecosystem.
In January 2025, the active addresses per hour on Solana were reported to be 26 times higher than Ethereum's, a clear indication of the network's scalability and efficiency, making it an attractive platform for developers and investors seeking faster transactions and lower fees.
Despite the impressive growth, Franklin Templeton's report highlights that Solana's DeFi protocols are undervalued as compared to their Ethereum counterparts, presenting an investment opportunity as the market recognizes Solana's growing influence in the DeFi sector.
Franklin Templeton's optimism is further manifested in the filing for a Solana ETF with the U.S. SEC, which includes staking capabilities for investors to partake in network validation processes, a first for a Solana-based ETF.
While some remain cautious about Solana's potential to overtake Ethereum, industry experts believe that Solana's continuous innovation and expansion in the DeFi ecosystem could pave the way for it to reach valuations akin to Ethereum's in the future.
As of the latest data, SOL was trading for $149.77, showcasing a growth of over 5% in the past 24 hours.