Solana's DeFi Surges as Ethereum's Liquid Staking Declines
The cryptocurrency landscape has witnessed significant shifts in recent months, with Solana's DeFi activity surging following the introduction of memecoins like 'TRUMP' token. Meanwhile, Ethereum's liquid restaking sector has seen a notable decline in total value locked (TVL).
Solana's DeFi ecosystem has flourished, with a TVL exceeding $10 billion in early 2025. Key players in this growth include Marinade Finance, Solana's leading staking protocol managing billions in liquidity and security, and DEXs like Raydium and Jupiter, which have seen trading volumes surpass $10 billion daily.
However, not all sectors have experienced growth. The Ethereum liquid restaking sector's TVL has dropped by approximately 37% from its December 2024 peak. Several protocols have seen decreases in TVL, with EigenLayer down from 5.4 million ETH to 4.4 million ETH and Kelp down 10% from its April 2024 peak. Renzo's TVL has declined sharply, down 61% from its high of 1.04 million ETH. Conversely, Ether.fi's TVL has steadily increased since January 2024, growing from 44,000 ETH to 2.75 million ETH.
ETHFI, Ether.fi's governance token, is currently trading at $1.31 with a market capitalization of $388 million. The reductions in TVL are largely attributed to the waning enthusiasm around airdrops and capital rotation towards other yield opportunities.
While Solana's DeFi activity continues to thrive, driven by memecoins and robust trading volumes, Ethereum's liquid restaking sector faces challenges. The TVL reductions across various protocols highlight the dynamic nature of the crypto market, with capital flowing based on yield opportunities and hype cycles.
