Summary: Solana DeFi protocol is flourishing with its charges increasing by 2,400% in a year as compared to 150% on Ethereum. Its DeFi tokens are still undervalued at 9x median multiple against Ethereum’s 18x, reports a Franklin Templeton report.
Even with Solana’s breakneck growth, Ethereum still leads with Layer-2 networks such as Arbitrum and Optimism relaxing congestion and reducing fees. While Solana keeps demonstrating resilience, the market will likely alter its valuation sooner rather than later.
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Solana’s DeFi scene is growing at breakneck speed, with revenue soaring 2,400% in just a year. Yet, according to a Franklin Templeton report, its DeFi tokens are still priced much lower than Ethereum’s.
The study contrasted top DeFi initiatives from each of the two chains—Lido, Aave, Maker, and Uniswap for Ethereum, and Jito, Jupiter, Kamino, and Raydium for Solana. While as genuine as Solana’s DeFi boom, its initiatives boast a median valuation multiple of 9x, in contrast to Ethereum’s 18x.
Ethereum’s Layer-2 networks, including Arbitrum and Optimism, continue to reduce congestion and fees, cementing its market dominance. But should Solana continue growing at the same pace, its DeFi tokens will be catching up very shortly.
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DeFi is in the process of developing quickly, with Solana gaining ground as Ethereum plays catch-up. If Solana will be able to fully close the gap remains to be seen, but its rise is impossible to overlook.