Markets are shaky, and conviction is being tested.
With macro FUD building, capital continues to rotate out, pushing risk assets broadly into the red. In this environment, holding key support levels is critical. Lose them, and downside capitulation becomes far more likely.
Notably, for Solana [SOL] and Ethereum [ETH], fundamentals are starting to show up. According to Token Terminal, Solana’s staking ratio has reached an all-time high of 70%, locking up roughly $60 billion in SOL.
Source: Token Terminal
Meanwhile, Ethereum isn’t far behind. BitMine (BMNR) continues to add to its staking position, with another 86k ETH staked, pushing Ethereum’s staking ratio to an all-time high of 30%, or about $120 billion locked up.
Together, these trends reinforce AMBCrypto’s thesis: Even amid volatility, L1s fundamentals are quietly strengthening, with staking acting as a solid signal of long-term conviction. But there’s a key divergence worth noting.
Around 70% of all SOL is staked, versus “only” 30% of ETH. While both L1s hit major staking milestones, the economic impact is very different. Could this mean that SOL is becoming “economically” stronger than ETH?
Solana’s staking edge: A sign of long-term conviction?
Solana’s staking edge shows why its supply dynamics are tighter.
In economic terms, a breakout needs a supply-demand imbalance, where demand gradually outweighs supply. With 567 million SOL in circulation, 70% staked means nearly 400 million tokens are effectively locked.
By comparison, Ethereum only has about 37 million ETH staked. That means Solana’s staked supply is more than 10x larger than Ethereum’s, highlighting its much stronger supply squeeze.
Source: TradingView (SOL/ETH)
From a long-term perspective, this divergence matters.
A larger proportion of locked tokens reduces circulating supply, which can amplify price moves in the long-term. For instance, despite the ongoing volatility, SOL continues to outperform ETH, with the ratio up 2.13%.
Adding to this, Solana has pulled in over 50% of bridged capital from Ethereum, totaling $50 million in the past seven days alone, a clear signal that its on-chain demand and network activity are gaining momentum.
In short, Solana’s strong staking economics aren’t just theoretical. Instead, they’re now showing up as real technical strength and on-chain growth, highlighting SOL’s resilience and its relatively stronger long-term potential.
Final Thoughts
- 70% of SOL is staked, over 10x Ethereum’s staked supply, creating tighter supply dynamics and long-term economic strength.
- Strong staking, continued capital inflows, and a rising SOL/ETH ratio show Solana’s technical strength and growing network momentum.
